Leading global brokerage firms have released a fresh set of recommendations covering sectors including pharmaceuticals, cement, electronics manufacturing services (EMS), ports, mattresses and financials. While several firms raised target prices on companies backed by improving earnings visibility, operational execution and sector tailwinds, Sheela Foam emerged as the notable downgrade of the day.
Here’s a look at the latest brokerage recommendations:
Citi Reiterates ‘Buy’ on Divi’s Labs, Sees Strong Growth Ahead
Rating: Buy (Maintained)
Target Price: Rs 9,450
Citi remains optimistic on Divi’s Laboratories, citing a strong pipeline of peptide-based products that could enter commercial production over the next 12 to 15 months.
The brokerage expects:
- GLP-1 API supplies to begin in FY27.
- Enlicitide and Icotrokinra commercialisation from CY27.
- Capacity expansion to strengthen Divi’s position as a global API leader.
- Concerns surrounding Entresto to be largely overdone.
According to Citi, Divi’s Labs continues to trade at a valuation discount compared with several smaller Indian CDMOs despite offering stronger earnings visibility and long-term growth prospects.
Bernstein Stays Cautious on Biocon
Rating: Underperform (Maintained)
Target Price: Rs 326
Bernstein maintained its bearish stance on Biocon, highlighting multiple structural concerns.
The brokerage believes:
- Heavy investment in innovation has yet to meaningfully translate into revenue growth.
- The company’s leverage remains elevated.
- Policy changes are reducing competitive advantages.
- Biocon could take at least four to five years to surpass the $2 billion revenue milestone.
- Leadership succession continues to focus more on scientific innovation than commercial execution and capital allocation.
Jefferies and HSBC Raise Nuvoco Vistas Targets
Jefferies
Rating: Buy (Maintained)
Target Price: Rs 430 (Earlier Rs 410)
Jefferies raised its target after Nuvoco Vistas delivered better-than-expected quarterly earnings, driven by stronger pricing and disciplined cost management.
The brokerage noted:
- Improved procurement and reduced petcoke usage helped offset input cost pressures.
- Operational execution exceeded expectations despite a challenging macro environment.
- Seasonal softness is expected in Q2, while commissioning of the acquired Vadraj assets remains a key trigger.
HSBC
Rating: Buy (Maintained)
Target Price: Rs 475 (Earlier Rs 420)
HSBC also lifted its target price, citing:
- EBITDA outperformance supported by higher cement prices.
- Expectations of stronger demand, improved pricing and lower cost pressures during the second half of FY27.
Macquarie Turns More Bullish on Dixon Technologies
Rating: Outperform (Maintained)
Target Price: Rs 16,000 (Earlier Rs 15,000)
Macquarie increased its earnings estimates, expecting Dixon Technologies to benefit significantly from its joint venture with Vivo.
The brokerage forecasts:
- Revenue CAGR of 28% between FY26 and FY29.
- EPS CAGR of 43% during the same period.
- Earnings per share could nearly triple by FY29.
- Additional upside from PLI 2.0, industrial EMS, automotive electronics, IT hardware and import duty changes.
CLSA Identifies Four Technical Breakout Picks
CLSA’s Laurence Balanci highlighted four stocks showing favourable technical setups:
Delhivery
- Attractive entry near the breakout zone.
- Upside target: Rs 655.
- Bullish view remains valid above Rs 484-490.
Titan
- Target: Rs 5,250-5,260.
- Initial stop-loss: Rs 4,306.
Shriram Finance
- Pullback towards the 50-day moving average offers a buying opportunity.
- Target: Rs 1,230-1,240.
Max Healthcare
- Recent correction presents an attractive entry.
- Target: Rs 1,363.
- Stop-loss: Rs 1,011.
Investec Downgrades Sheela Foam
Rating: Sell (Downgraded from Hold)
Target Price: Rs 700
Investec turned negative on Sheela Foam, arguing that the stock’s recent rally has outpaced fundamentals.
The brokerage believes investor optimism surrounding:
- Strong Q4 volume growth,
- Potential IPO-led value unlocking through Rentomojo and Furlenco,
- Operating leverage and synergy benefits,
has already been priced in, leaving limited room for further upside.
UBS Positive on Banks and NBFCs
UBS observed that asset quality remained resilient during May 2026 despite macroeconomic uncertainty.
Key observations:
- Banks recorded broad-based improvement across loan segments.
- NBFC asset quality remained stable overall.
- Small-ticket loan against property (LAP) portfolios showed weakness.
UBS Top Picks
Banks
- Axis Bank
- ICICI Bank
NBFCs
- Shriram Finance
- Cholamandalam Investment & Finance
- PNB Housing Finance
HSBC Raises Target on Adani Ports
Rating: Buy (Maintained)
Target Price: Rs 2,200 (Earlier Rs 1,950)
HSBC believes Adani Ports & SEZ is entering a new growth phase supported by stronger governance and improving financial metrics.
The brokerage highlighted:
- Reduced governance-related concerns.
- Continued deleveraging.
- Better disclosure standards.
- Strong operational execution.
- Above-market domestic port growth driven by container traffic.
HSBC expects these factors to support a sustained re-rating, with its FY31 outlook anchored by robust organic growth and healthy operating economics.