Analysts Upgrade Rating on These Stocks in December for up to 34% Returns
The stock market hit a new record in December with Nifty trading about 1,000 points higher than pre-COVID peak levels. In the last nine months since March 23 low, the benchmark indices have gained 77 percent each.
The easing monetary policy across the globe to support economic recovery, better-than-expected September quarter earnings. There was a steep correction earlier this week due to the discovery of a new strain of coronavirus in the United Kingdom, but the market recovered gradually.
A lot of stocks have seen an upgrade in rating since October. More than 100 stocks already had received buy ratings in the previous two months, especially after September quarter earnings.
L&T Technology Services
With 2 recent big deal wins & increasing discretionary spending, Prabhudas Lilladher believes LTTS revenue growth will pick up faster than expected and there will be an improvement in margins too.
The brokerage upgraded rating to buy with a higher target of Rs 3,000, valuing the stock at 34x FY23e EPS, earlier Rs 2,500
Prabhudas Lilladher upgraded Cipla to buy as it included Rs 51 per share benefit from Revlimid launch which leads to a new target of Rs 887.
ONGC, Oil India
The brokerage upgrade target for ONGC to Rs 120 per share and Oil India to Rs 130 per share. Hence ONGC and Oil India as tactical buys on rising crude price. ONGC is our preferred play due to production growth visibility and its higher leverage to crude price.
The brokerage said upgrading our rating from a sell to a buy, with a revised target price of Rs 373.
The brokerage said NMDC to buy with a target of Rs 125 based on 1) EV/EBITDA of 3.7x FY22 for iron ore operations and 2) EV/T of $475 for 3mtpa steel plant.