Brokerage Views: Nomura, Citi Downgrade Gas Distributors, Morgan Stanley Upgrades Suzlon, And More

Citi Research and Nomura downgraded city gas distributors by 10–14% after GAIL (India) Ltd. announced that it is reducing domestic gas allocation to the range of 13–20%. Meanwhile, Morgan Stanley upgraded Suzlon Energy Ltd. to 'overweight'.

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

Nomura On Indraprastha Gas, Mahanagar Gas

Downgrades Indraprastha Gas to 'reduce' with a revised target price of Rs 340, implying a 4.5% upside.
Maintains 'reduce' rating on Mahanagar Gas with a target price of Rs 1,130, implying no upside or downside.
Ratings and targets reduced due to lower domestic gas allocation.
City gas distribution companies face lower margins and volume growth.
Expects compressed natural gas prices to rise by Rs 8–9 per kilogram for Indraprastha Gas and Rs 9–10 per kilogram for Mahanagar Gas.
Triple risks could emerge if the Petroleum and Natural Gas Regulatory Board designates geographical areas as common carriers.

Citi On City Gas Distribution Companies

Cuts target prices for Indraprastha Gas, Mahanagar Gas, and Gujarat Gas to Rs 450, Rs 1,650, and Rs 440, respectively.
New target prices imply 38–46% upside for Indraprastha Gas and Mahanagar Gas, while Gujarat Gas has a 2.9% downside.
Reduces Ebitda estimates for Indraprastha Gas by 10–21%, Mahanagar Gas by 5–10%, and Gujarat Gas by 8–9%.

Also Read: City Gas Sector Could See Consolidation Amid Margin Pressure: Citi's Saurabh Handa

Morgan Stanley On Suzlon Energy

Upgrade to 'overweight' from 'equal-weight' with a revised target price of Rs 71, implying a 20% upside.
Stock's 35% correction from its 52-week high presents an opportunity.
Strong factors include a business moat and a large 5.1-gigawatt backlog.
Expects market share to rise to 35–40% by the fiscal year ending March 2027, up from 25% in the fiscal year through March 2024.
Fiscal year ending March 2025 sales volume estimate reduced to 1.3 gigawatts from 1.5 gigawatts.
Fiscal year 2026-27 sales volume estimates remain at 7.15 gigawatts.
Margin estimates for the fiscal years ending March 2026 and March 2027 remain at 10% and 12%, respectively.
Key risks include capacity addition delays, higher operating expenses, and increased competition.

Also Read: NTPC Green Energy IPO: Should You Invest Or Not?

Goldman Sachs On InterGlobe Aviation

Maintain 'buy' rating with a target price of Rs 4,800, implying a 23% upside.
Domestic air traffic for November to date has averaged around 4.73 lakh passengers per day.
Passenger load factor for November is closer to 90% versus 85.6% in November 2023.
Domestic ticket fares in November and December are down 4–5% and 5% or more year-on-year, respectively.
Yields are lower due to improved traffic and higher passenger load factors.
Believes there could be upside to guidance of low-to-mid single-digit year-on-year decline in passenger revenue per available seat kilometer for the quarter ending December 2024.
Jet fuel prices revised to Rs 90.6 per liter by Indian Oil Corporation for November, with international jet fuel prices up marginally.
Additional plane capacity aligns with the guidance of adding one plane per week.

Also Read: Buy On Dips: HAL, IndiGo, Dabur And More — Jefferies Picks 14 Stocks

Citi On Indus Towers

Maintain 'buy' rating with a target price of Rs 485, implying a 50.5% upside.
Opened a 90-day positive short-term view.
Stock has corrected by 28% since announcing its buyback.
Positive factors include an expected pickup in tenancies from Vodafone Idea starting in the quarter ending December 2024, acceleration in the recovery of past dues from Vodafone Idea, declining capital expenditure aiding free cash flow generation, and improving visibility of dividend reinstatement by March quarter.

Also Read: Indus Towers Q2 Results Review - Provision Recovery Continues Aiding Earnings: ICICI Securities