Brokerage Insights on Key Stocks (September 18)
On September 18, several brokerage firms released their analysis and target prices for five prominent stocks that are expected to be in focus during today’s trading. Notable mentions include TCS, Bajaj Auto, Larsen & Toubro (L&T), Adani Ports, and LTI Mindtree. The recommendations indicate a mix of optimism for some stocks while suggesting caution for others. Let’s dive into the analysts’ insights and target prices for these stocks.
1. Macquarie’s Analysis of TCS
Macquarie has given Tata Consultancy Services (TCS) an ‘outperform’ rating with a compelling target price of Rs 5,740 per share. The brokerage emphasizes TCS’s rapid advancements in expenditure relative to competitors, particularly Infosys. Analysts believe that TCS holds a stronger competitive position, anticipating faster growth in FY26 and FY27. Additionally, TCS is expected to benefit from an uptick in cloud migration deals.
2. CLSA’s Perspective on Bajaj Auto
CLSA has rated Bajaj Auto as ‘underperform’ with a target of Rs 7,000 per share. While the launch of the new ‘Speed T4’ scooter at Rs 2.17 lakh is considered attractive, CLSA maintains a cautious stance due to escalating market competition. The brokerage expresses concerns over sluggish growth in the motorcycle segment, particularly for bikes exceeding 250cc, which may impact the company’s overall performance.
3. Jefferies’ Outlook on Larsen & Toubro (L&T)
Jefferies has issued a ‘Buy’ recommendation for L&T, with a target price set at Rs 4,165 per share. The brokerage expresses confidence in L&T’s ability to meet revenue growth targets for FY25, despite potential government-related delays following elections. Jefferies believes that capital expenditure (capex) growth will remain robust in the medium term, providing a strong tailwind for L&T.
4. Jefferies’ View on Adani Ports
Also under Jefferies’ coverage, Adani Ports received a ‘Buy’ recommendation with a target price of Rs 1,910 per share. Analysts foresee a promising outlook, projecting double-digit volume growth in FY25. Furthermore, the expansion of new port operations and the commissioning of the Dedicated Freight Corridor at Mundra Port are expected to enhance growth in the latter half of the fiscal year.
5. Citi’s Assessment of LTI Mindtree
Citi has assigned a ‘Sell’ rating to LTI Mindtree with a target price of Rs 5,635 per share. While the company is expected to maintain similar revenue growth in the second quarter as in the first, margin pressures could persist. The brokerage highlights that slow growth and cost-cutting measures could negatively impact the company’s valuations moving forward.
Summary of Stock Recommendations
| Stock | Brokerage Firm | Rating | Target Price (Rs) |
|---|---|---|---|
| TCS | Macquarie | Outperform | 5,740 |
| Bajaj Auto | CLSA | Underperform | 7,000 |
| Larsen & Toubro | Jefferies | Buy | 4,165 |
| Adani Ports | Jefferies | Buy | 1,910 |
| LTI Mindtree | Citi | Sell | 5,635 |
Conclusion
As market dynamics evolve, the varied recommendations from these brokerage firms highlight differing prospects for TCS, Bajaj Auto, L&T, Adani Ports, and LTI Mindtree. Investors should consider these insights and the associated risks before making investment decisions. Consulting with certified financial experts is highly encouraged to navigate the complexities of stock trading effectively.
Disclaimer: The views and investment advice provided by the brokerage firms mentioned herein are their own and do not reflect the opinions of this platform. Users are advised to consult with certified experts before making any investment decisions.
