Sun Pharma, DRL, ACC among 5 stocks seeing revision in ratings

NEW DELHI: Various brokerages have revised their recommendations on Sun Pharma, Dr Reddy's, ACC, Ambuja and Nestle India this last week.

We have collated the views from different brokerages on the stocks for a 12-month investment horizon:

Credit Suisse on Dr Reddy's Lab: Rating: Neutral; Target price: Rs 3,600

Credit Suisse maintains a neutral rating on Dr Reddy's Laboratories, but has slashed its target price to Rs 3,600 from Rs 4,000, as possibility of further approvals from other plants may be impacted after the US Food and Drug Administration has threatened to ban all products made at certain facilities of India's second largest drugmaker.

The brokerage sees FDI approvals impacted until Dr Reddy's Laboratories submits a third-party risk assessment, said the global brokerage firm. The next key catalyst for the stock is getting a new approval from the FDA. Credit Suisse is of the view that Dr Reddy's will now require a more comprehensive response on data reliability and computer control. They have slashed FY17 earnings per share (EPS) by 10 per cent on slower approval, valcyte & Venezuela hit.

For minute-by-minute market/stock updates, follow our Twitter handle @ETMarkets

CLSA on Sun Pharma: Rating: Attractive; Target price: Rs

The Asia-focused brokerage said cancelling of wind energy development is a positive development. The move will allay the capital allocation fears of investors. It continues to like Sun Pharma's business model and earnings growth prospects. Timely launch of gGleevec in the US due in February 2016 will be a key catalyst for the stock. Sun Pharma trades at a compelling 20x FY17 EPS, in-line with its 10-year average PE.

BofA-ML on ACC and Ambuja: Rating: Downgraded, ACC target price Rs 1,283, Ambuja target price: Rs 190

BofA-ML downgrades ACC and Ambuja and slashed target price by 26%-30% to Rs 1283, and Rs 190, considering the fact that they are losing market share. Both cement majors are consistently reporting weaker Ebitda margin. BofA-ML has reiterates buy rating for UltraTech, Grasim and Shree Cement. Poor monsoon and slower capex cycle restraining cement industry.

SBICAP Securities on Nestle India: Rating: Buy; Target price Rs 7,300

SBICAP Securities maintains a buy rating on the stock with a 12-month target price of Rs 7300, which represents an upside of over 20 per cent.

"We believe the management's focus on greater innovations and reviving volume growth is a step in the right direction, and is likely to improve Nestle's growth trajectory in the coming quarters," said the brokerage firm.

Faster recovery of Maggi Noodles can further drive an improvement in growth and earnings in the future. SBICAP remains positive on Nestle and maintain BUY rating with a target price of Rs7,300.

(Views and recommendations given in this section are the analysts' own and do not represent those of EconomicTimes.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)