it stocks to buy: What foreign brokerages said on TCS, Infosys and 4 other stocks

What foreign brokerages said on TCS, Infosys and 4 other stocks

13 Jan , 2022 By : monika singh

NEW DELHI: Select foreign brokerages have maintained their neutral-to-positive view on Infosys and TCS NSE 0.64 % and underweight stance on Wipro post third quarter earnings.

Two brokerages have maintained their neutral-to-negative view on Tata Motors following its third quarter sales figures for JLR; overweight recommendations were seen on each of Larsen & Toubro and Jubilant Foodworks.
In the case of Infosys, CLSA said the third quarter results highlighted the demand momentum and efficient cost management. Stating that Infosys had a strong bet on revenues and margin, it said that the medium-term demand outlook is strong. The brokerage has a buy rating on the stock with a target of Rs 2,280. UBS said Q3 beat, stronger guidance will raise expectations from the sector. It expects upward revisions to consensus forecasts for FY23 and expects investors to remain optimistic on demand.It remained neutral on Infosys with a target of Rs 1,820.

In the case of TCS, Morgan Stanley said a better growth more than offsets the margin miss. Revenue growth, it said, surprised after a gap of two quarters, which should drive some optimism towards the stock. It sees room for TCS valuations to move up. The brokerage has a target of Rs 4,400 on the stock.

BofA Securities, meanwhile, has an underperform rating on Wipro with a target of Rs 700, following the minor miss to Q3 revenue and Q4 revenue guidance. It sees risk-reward in Wipro less attractive compared with peers.

Among non-IT stocks, BofA Securities has a neutral rating on Tata Motors with a target of Rs 525. JLR volumes disappointed on semiconductor shortages, it said, adding that positive mix saved the day on free cash flow. Retail volume performance was weak, it added.
CLSA has a sell rating on this stock with a target of Rs 408. Semiconductor shortages continue to play spoilsport, it said. Retail volumes declined significantly in Q3 while wholesale volumes were below expectations, it said while expecting cash flow and profitability to improve as volume increases.

Credit Suisse has an outperform rating on L&T with a target of Rs 2,450. It expects L&T to report Q3 revenues of Rs 40,600 crore. "Expect execution recovery, modest ordering," it said.
Lastly, JPMorgan has an overweight stance on Jubilant FoodWorks with a target of Rs 4,350 as positives overweight the risks. Jubilant is well-placed to witness another year of outperformance, it said. Successful Popeyes launch would be a key positive catalyst. Recent price hikes mitigate the cost push challenge, it said.