Brokerage Views: Infosys Takes The Spotlight, Citi On ONGC And More

Brokerages like Citi Research, Nuvama Institutional Equities and Jefferies India Pvt. raised the target price of Infosys Ltd. after its quarterly earnings. ICICI Securities Ltd. initiated coverage on Zen Technologies Ltd.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Friday.

Nuvama On Infosys

Maintains a 'buy' rating on the stock and raises the target price to Rs 2,050 apiece from Rs 1,720 earlier, implying a potential upside of 16.2% from the previous close.
Management sounded upbeat, anticipating a recovery in the US banking and financial sector.
Guidance includes 0.7% contribution from in-tech acquisition.
This quarter, 34 large deals were signed and a TCV of $4.1 billion.
Utilisation increased to 83.9%, likely to be a key lever for margin expansion.
Discretionary spends remain largely on hold.
Infosys will benefit disproportionately in FY25/26, from revival in discretionary spends.

Also Read: Infosys Shares Rally After Raising FY25 Guidance On Positive Q1 Earnings

Jefferies On Infosys

Maintains a 'buy' rating on the stock and raises target price to Rs 2,040 apiece from Rs 1630 earlier, implying a potential upside of 18% from the previous close.
Initial signs seen of recovery in the BFSI.
Discretionary remains under pressure.
Strong deal wins and operating performance indicates that the worst is behind.
Raises estimates by 3–4%.
Expects Infosys to deliver a compound annual growth rate of 10% in earnings over FY24–27.
Values Infosys at 27 times its price to earnings ratio.

Also Read: Trade Setup For July 19: Nifty Bulls Eye 25,000 Milestone Amid Pre-Budget Rally

CLSA On Infosys

Maintains a 'hold' rating on the stock and raises the target price to Rs 1,747 apiece from Rs 1,607, implying a potential downside of 1% from the previous close.
Revenue above estimates.
Sharp revival in the BFSI.
Strong deal wins and acquisition led to lifting of guidance.
Increases earnings by 5% due to higher margin assumptions.
Early signs of margin improvement under the new chief financial officer.

Also Read: Stocks To Watch: Reliance Industries, Infosys, UltraTech, Wipro, HAL

Citi On Infosys

Maintains a 'neutral' rating on the stock and a target price of Rs 1,850 apiece, implying a potential upside of 4.9% from the previous close.
Numbers above expectations.
Guidance has been revised partly because of the acquisition.
Expects better growth, strong total-contract-value momentum, improved free-cash-flow trends.
Infosys remains a preferred pick in the IT sector.
Near-term upsides may be capped, given the sharp 25% move in 45 days.
Reiterates ongoing pair trade: 'overweight' on Infosys Ltd. and 'underweight' on Tata Consultancy Services Ltd.

Also Read: Infosys Best Way To Play Tech Revival After Upbeat Earnings, Say Analysts

Citi On ONGC

Maintains a 'buy' rating on Oil & Natural Gas Corp. and raised target price to Rs 370 apiece from earlier Rs 315, implying a potential upside of 11% from the previous close.
Target price raised on higher core enterprise value and Ebitda multiple from 4 times to 4.5 times.
Sees improvement in outlook in both oil and gas production as well as realisations.
Raises FY26 earnings by 9%.
Expects $4–5-per-barrel increase in gross and net oil-price realisations.
Target price raised on marking-to-market the value of ONGC's investments.

Also Read: Stocks Slide Before High-Stakes Megacap Earnings: Markets Wrap

Citi On Tata Technologies

Maintains a 'sell' rating on the stock and raises target price to Rs 935 apiece from earlier Rs 900, implying a potential downside of 6.5% from the previous close.
Managed EBIT margins well despite soft revenue growth.
Weak growth aided by lower outsourcing and consultancy charges.
No drag from VinFast going ahead.
Reported weak start to FY25.
Management seems confident of the demand outlook.
Some peers have indicated moderation in automotive spends to be monitored going forward.

Also Read: Stock Market Today: Nifty, Sensex Extend Rally To Seventh Week; Infosys, ITC, Lead Friday's Gains

BNP Paribas On AIA Engineering

Initiates coverage on the stock with an 'outperform' rating and a target price of Rs 4,883 apiece, implying a potential upside of 15%.
Driven by superior product characteristics, which include higher yield in copper and gold.
Despite slightly less pricing versus peers its profitability is 2–3 times the Ebitda per kg.
Key costs are passed through with a lag.
Values the company at 34 times the FY26 the earnings-per-share estimates.
Multiple is sensitive to growth and can range between 25 and 42 times in its assessment.

ICICI Securities On Zen Technologies

Initiates coverage on Zen Technologies Ltd. with a 'buy' rating and a target price of Rs 2,000 apiece, implying a potential upside of 48%.
An IP-based business model backed by in-house research and development.
Products are based on 70–80% in-house intellectual property.
Strong moat, lower reliance on third parties and insulation from fluctuations in raw material prices.
Significant regulatory tailwinds.
The Ministry of Defence has a comprehensive framework aimed at implementing simulation-based training across all military domains.
Zen has just scratched the surface of sizable opportunity.
Management sizes opportunity potential at Rs 15,000 crore over five years for platforms it operates in.
Entering a high earnings-growth phase.
Value Zen at 45 times the FY26E.
Risks include escalating competition and aggressive pricing, shift in government spending and a change in end-user preferences.