zomato share price: Hot Stocks: Brokerage view on Zomato, AB Capital, Asian Paints and Westlife Food

Brokerage firm JPMorgan maintained an overweight rating on Westlife Foodworld, Macquarie recommended an outperform rating on Asian Paints, HSBC maintained a buy rating on Zomato and Morgan Stanley recommended equal weight stance on AB Capital.

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

JPMorgan on Westlife Foodworld: Overweight| Target Rs 905

JPMorgan maintained an overweight rating on Westlife Foodworld but slashed the target price to Rs 905 from Rs 965 earlier.

The stock witnessed some correction, but long-term investors can look at accumulating the stock on dips. SSSG trends bottomed out in Q3 but stayed soft in the near term.

New store openings are on track and there is no change in the footprint expansion agenda. Going forward, McRewards loyalty program could be an important growth enabler.

Macquarie on Paint stocks: Asian Paints, Berger Paints

Macquarie maintained an outperform rating on Asian Paints with a target price of Rs 4000, and an underperform rating on Berger Paints with a target price of Rs 520.The global investment bank has a neutral rating on Kansai Nerolac but slashed the target price to Rs 320 from Rs 360 earlier.Grasim’s launch may not materially hurt Asian Paints. Asian Paints’ recent price cuts are more aligned with the history of keeping gross margin in a tight band.

The global investment bank sees margin headroom from lower rebates post price cuts. Checks indicate that Grasim’s product may be priced 7-9% lower vs Asian at the dealer level.

Grasim paint prices suggest similar discounting as peers like Berger and Kansai. The global investment bank slashed earnings estimates for Berger and Kansai on rising costs of access for smaller players.

Morgan Stanley on AB Capital: Equal Weight| Target Rs 190


Morgan Stanley maintained an Equal Weight rating on Aditya Birla Capital with a target price of Rs 190.

ABCL, a non-operating holdco, announced a reverse merger of its NBFC subsidiary with itself. “The tangible economic benefit is not material, in our view,” said the note.

“It may, however, lower the holdco discount that could follow if the NBFC were to list by Sep-25. RBI approval is the key,” it said.

HSBC on Zomato: Buy| Target Rs 200


HSBC maintained a buy rating on Zomato but raised the target price to Rs 200 from Rs 163 earlier.

Advertising revenues will remain the cornerstone of Blinkit’s business in the long term. HSBC expects digital spend share to increase in India and, within that, platforms to gain share thereby helping Blinkit.

HSBC upgrades its Blinkit GOV growth rates.

(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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