Price target upgrades by analysts outnumbered downgrades by about three to two in May as the Indian markets rose to near all-time highs on optimism of Covid-19 vaccination picking up, record collection of goods and services tax in April and improved India Inc. earnings in the fourth quarter.
The average of 12-month target prices rose for 61 of BSE100 firms in the last month, according to Bloomberg data. The increase is in the range of 0.1% to 36.1%.
34 companies saw their price targets lowered by 0.1% to 11.9%.
There was no change for five companies.
Analysts are optimistic about the second virus surge waning. But there have been reports of large-scale underreporting and even the pace of vaccination has dropped. And a stock surge defying economic concerns has even prompted the central bank to wonder if it's a “market bubble”.
The S&P BSE Sensex jumped 7% in May to near its record high, with most of the gains coming in the second half of the month as confirmed Covid-19 infections started coming down. And fourth-quarter earnings improved with 56.1% of the 78 BSE100 companies that have disclosed results beat estimates despite cost pressures.
Here's the list of top target price upgrades and downgrades in May:
Upgrades
Tata Steel Ltd., Vedanta Ltd., JSW Steel Ltd., Hindalco Industries Ltd., and Container Corporation of India Ltd. are among the stocks that saw the biggest price target upgrade:
Downgrades
Bandhan Bank Ltd., MRF Ltd., Zee Entertainment Enterprise, Hero Motocorp Ltd. and Pidilite Industries Ltd. are the stocks that saw the biggest cut in 12-month price target in May.
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