The Biggest Target Price Upgrades And Downgrades In May

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.

Also Read: What Foreign Investors, Domestic Mutual Funds Bought And Sold In FY21

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:

Also Read: Pharma, Small Cap-Focused Portfolio Managers Beat The Rest In April

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.

Also Read: The Portfolio Managers Who Beat The Benchmarks