stock recommendations: Hot Stocks: Brokerages on Escorts & SBI; CLSA downgrades Sula

Brokerage JPMorgan maintained an overweight rating on SBI and Macquarie upgraded Escorts to outperform. CLSA downgraded Sula to underperform while maintaining a sell on Asian Paints post Q4 results.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

JPMorgan on SBI: Overweight| Target Rs 1000

JPMorgan maintained an overweight rating on SBI but raised the target price to Rs 1000 from Rs 725 earlier.

The FY24 print shows that the growth and the return on equity (ROE) gap to private banks has closed out.

The global investment bank expects a similar dynamic to sustain this year as well.Positioning is enviable with a growth pick-up in corporate loans, low pressure on opex, and a favourable asset quality environment.Despite potentially lower recovery income in FY25, we think the bank can continue to print 1%+ ROA.

CLSA on Sula: Underperform| Target Rs 515

CLSA downgraded Sula to underperform from a buy and also slashed the target price to Rs 515 from Rs 819 earlier.

The key markets may impact future growth. Margins were disappointed in Q4 due to higher other expenses.

Macquarie on Escorts: Outperform| Target Rs 3880

Macquarie upgraded Escorts to outperform from neutral and also raised the target price to Rs 3880 from Rs 2960 earlier.

FY25E should see domestic tractor demand recovery. The management expects exports to pick up in FY25.

The global investment bank expects a margin improvement to 13.6% in FY25.

CLSA on Asian Paints: Sell| Target Rs 2337

CLSA maintained a sell rating on Asian Paints but slashed the target price to Rs 2337 from Rs 2410 earlier.

The top-line growth is in negative territory, and there is contraction in margins. All eyes are on competitive activity in the sector.

The value growth will likely continue to lag volume growth due to price cuts taken in FY24.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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