AK Stockmarket views on Yes Bank, Suzlon Energy

A.K. Stockmart on Suzlon Energy - Target Rs 85

 

A.K. Stockmart has initiated a buy recommendation on Suzlon Energy, with price target of Rs 85, in its report. The stock closed at Rs 59.20.

"We have valued Suzlon Energy based on weighted average of the DCF (WACC— 10.82%, terminal growth rate — 1.5%) and P/E methodology to arrive at a price target of Rs 85. We apply an industry average multiple of 16.0x of our target FY2012E EPS of Rs 4.94. We recommend a buy rating on the stock, with potential upside of 20%. We initiate coverage on the company with a buy rating with 12 month price objective of Rs 85," says A. K. Stockmart report.

 

 

AK Stockmarket on Yes Bank - Target Rs 320

 

AK Stockmarket has initiated buy rating on Yes Bank with a target of Rs 320, in its research report.

"Yes Bank registered CAGR of 73% in loans over FY-06-09 as against industry CAGR of 22%. Further in 9M FY10 even though industry was under pressure Yes Bank was able to leverage its strength to grow its loan book by 72% Y-o-Y (5.5x industry growth). Yes Bank has demonstrated its ability to maintain its margin throughout the cycle despite being wholesale funded (ability to pass on higher rates due to differentiated offerings). We initiate BUY with a price target of Rs 320 implying a P/Bv multiple of 2.5x for FY 12E as we believe it deserves premium due to strong growth and its quality performance," says AK Stockmarket research report.