Hot Stocks: Goldman Sachs includes Paytm in conviction list, sees 60% upside; Citi downgrades Mphasis

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Brokerage firm Citigroup downgraded

to sell, while Morgan Stanley maintained an overweight rating on

. Goldman Sachs retained buy on

and CLSA upgraded

to buy.

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

Citigroup on Mphasis: Sell| Target Rs 1900| LTP Rs 2059| Downside 7%
Citigroup downgraded Mphasis to sell with a target price of Rs 1900 largely on high valuation.

The global investment bank prefers Mphasis over the other mid-tier peers earlier. Drag from digital risk business is likely to continue, it said.

“A tough macro could impact further, and valuations are at ~21x 1-year. Forward consensus EPS remains high,” it said.

Morgan Stanley on

Company: Overweight| Target Rs 2902| LTP Rs 2737| Upside 7%
Morgan Stanley maintains an overweight rating on Titan Company with a target price of Rs 2902 which translates into an upside of over 7% from Rs 2737 recorded on 22 September.
“There are multiple forces that are in favour of Titan. There are three key themes at play: new business heads, sustainable and profitable approach, strong relationship with stakeholders,” it said.

The management says that inflationary pressures have not affected demand. The global investment bank sees a sustainable and profitable scaling approach which is positive.

Goldman Sachs on Paytm: Buy| Target Rs 1100| LTP Rs 684| Upside 60%
Goldman Sachs maintains a buy rating on Paytm with a target price of Rs 1100 which translates into an upside of over 60% from Rs 684 recorded on 22 September.

The global investment bank added the stock to its Conviction List. The business model is continuing to show strong traction, it noted.

The global investment bank expects it to be one of the most compelling growth stories at an attractive price.

The lock-in expiry (86% of Paytm’s outstanding shares) in Nov ’22 may represent an overhang. The company could deliver 50% revenue growth for the next few quarters, and margins to further improve, said the note.

CLSA on ICICI Lombard: Buy| Target Rs 1470| LTP Rs 1194| Upside 23%
CLSA initiated coverage on ICICI Lombard with a buy rating and a target price of Rs 1470 which translates into an upside of over 23 per cent from Rs 1194 recorded on 22 September.

“The global investment bank sees multiple triggers that could reverse underperformance. Healthy growth, high-teen ROE and high combined ratio mark phase 3,” it said.

Market share loss has reversed, and the global investment bank expects a 15 per cent CAGR in premiums in 23-25CL.

Valuations are more reasonable now versus the euphoria of 2019-21, said the note.

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