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Brokerage Reports: Citi Slashes Yes Bank Target, JPMorgan & CLSA Bullish on Persistent Systems
- •Citi downgraded Yes Bank to Sell and lowered its target price to Rs 17.50 following the Supreme Court ruling on AT-1 bonds.
- •JPMorgan and CLSA issued positive ratings on Persistent Systems, citing strong Q2 revenue growth that surpassed estimates.
- •HSBC gave a Buy rating on Tech Mahindra with a target price of Rs 1,800, while CLSA maintained a Hold rating.
- •JPMorgan issued Overweight calls on Angel One and IIFL Finance after their strong Q2 performance and profit growth.
- •Nomura issued a Buy call on Wipro with a target price of Rs 200, noting that revenue was slightly better than expected.
Key Questions Answered
Citi has given a 'Sell' rating on Yes Bank and reduced its target price from ₹22 to ₹17.50. The brokerage estimates that the Supreme Court's ruling upholding the validity of the bank's ₹8,415 crore AT-1 bonds could pressure its capital position, potentially reducing the CET-1 capital ratio and book value.
Persistent Systems reported a 7.8% sequential Q2 revenue growth in constant currency, beating estimates. JPMorgan has given an 'Overweight' rating with a target price of ₹6,400, while CLSA issued a 'High-Conviction Outperform' rating with a target price of ₹6,488, and Motilal Oswal previously reiterated a 'BUY' rating with a target price of ₹6,200.
Tech Mahindra's Q2 results exceeded estimates with revenue, EBIT, and PAT higher by 0.2%, 2%, and 3% respectively, alongside a 25% year-on-year growth in its order book. HSBC issued a 'Buy' rating with a target price of ₹1,800, while CLSA maintained a 'Hold' rating with a target price of ₹1,494.
