SBI Life, HDFC AMC To ICICI Pru: Morgan Stanley Raises Target Prices For Key NBFCs Amid RBI Rate Cuts
The brokerage maintained its ratings and preferred picks, anticipating limited upside and more dispersion in stock returns over the next 12 months.
Morgan Stanley has increased the target prices for several non-banking financial companies, factoring in front-loaded rate cuts by the Reserve Bank of India, equity market movements into their earnings per share estimates and cost of equity assumptions.
Despite these adjustments, Morgan Stanley maintained its ratings and preferred picks, anticipating limited upside and more dispersion in stock returns over the next 12 months.
HDFC AMC
Morgan Stanley maintained an equal-weight rating for HDFC Asset Management Co. and hiked the target price to Rs 4,470 from Rs 3,740.
AB Capital
Morgan Stanley maintained an 'overweight' rating for Aditya Birla Capital Ltd. and increased the target price to Rs 295 from Rs 250.
SBI Life
The brokerage maintained an 'overweight' rating for SBI Life Insurance Co. and raised the target price to Rs 2,115 from Rs 2,050.
ICICI Pru Life
Morgan Stanley maintained an 'equal-weight' rating for ICICI Prudential Life Insurance Co. and increased the target price to Rs 625 from Rs 600.
L&T Finance
The brokerage maintained an 'underweight' rating for L&T Finance Ltd. and hiked the target price to Rs 132 from Rs 115.
Manappuram Finance
Morgan Stanley maintained an 'equal-weight' rating for Manappuram Finance Ltd. and raised the target price to Rs 270 from Rs 220.
HDFC Life
The brokerage maintained an 'overweight' rating for HDFC Life Insurance Co. and increased the target price to Rs 840 from Rs 815.
MCX
Morgan Stanley maintained an 'underweight' rating for Multi Commodity Exchange of India Ltd. and hiked the target price to Rs 5,750 from Rs 3,400.
Home First
The brokerage maintains an 'overweight' rating for Home First Finance Company India Ltd. and has increased the target price to Rs 1,540 from Rs 1,400.
PB Fintech
The brokerage maintained an 'underweight' rating for PB Fintech Ltd. and raised the target price to Rs 1,370 from Rs 1,130. PB Fintech, the parent company of Policybazaar and Paisabazaar, operates as an online platform for insurance and lending products.
Shriram Finance
Morgan Stanley maintained an 'overweight' rating for Shriram Finance Ltd. and hiked the target price to Rs 775 from Rs 750.
Muthoot Finance
The brokerage maintained an 'equal-weight' rating for Muthoot Finance Ltd. and increased the target price to Rs 2,880 from Rs 2,400.
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Chola Finance
Morgan Stanley maintained an 'equal-weight' rating for Cholamandalam Investment and Finance Co. and raised the target price to Rs 1,475 from Rs 1,430.
LIC Housing
The brokerage maintained an 'underweight' rating for LIC Housing Finance Ltd. and hiked the target price to Rs 480 from Rs 435.
Morgan Stanley's adjustments reflect the evolving market conditions and the potential impact of RBI's rate cuts on the financial performance of these NBFCs.
