BofA initiates coverage on Delhivery; Morgan Stanley bearish on Tata Power

BofA Securities initiated its coverage on the recently listed logistics service firm Delhivery with a buy rating and a target price of Rs 630, saying the company is in a sweet spot.

“The company is uniquely positioned to gain shares and extract synergies. It is on track for breakeven EBITDA and free-cash-flow,” it said.

Incremental growth drivers are expected with revenue growth of 40-43 per cent for FY 23-26, said BofA. It estimates Dehlivery’s express parcel volumes to rise at a CAGR of 33 per cent.

Not only Delhivery, BofA has a buy rating on

too. It sees the largest domestic car maker to hit the Rs 9,500 mark and has pushed its EPS estimate by 7-9 per cent.

Model cycle, margin tailwinds and steady demands can help the counter to sustain the momentum, it added. “Stock is trading at 24x FY24 P/E, which provides stocks for some catch-up,” it said.

Despite no recovery in the volumes, Hong Kong-based brokerage firm CLSA has maintained its outperform rating on Tata Motors with a target price of Rs 453.

“The volumes continue to decline across the geographies. JLR Volumes underperforms peers in US and Europe, and the expected slowdown in the economies is likely to keep volumes muted,” CLSA said.

However, another global brokerage firm Morgan Stanley remained bearish on Tata Power. It has an ‘underperform’ rating on the stock with a target price of Rs 175 on the counter.

It has lowered the earnings estimates by 3-10 per cent for FY 23-24, thanks to the lower possibility of monetization in the current macroeconomic environment. “A large portion of earnings growth is driven by commodity business,” it said.