Major Financial Institutions Release Key Stock Recommendations and Target Prices
In a series of significant market updates, leading global banks including Bank of America, UBS, Goldman Sachs, Morgan Stanley, and HSBC have issued fresh recommendations and target prices for prominent Indian companies. These calls cover sectors from technology and consumer goods to pharmaceuticals, reflecting diverse analyst insights on positioning, risks, and growth opportunities.
Bank of America Maintains Buy on Infosys with Rs 1,840 Target
Bank of America has upheld its buy recommendation on Infosys, setting a target price of Rs 1,840. Analysts noted several positive factors in the company's positioning, suggesting that the net opportunity could be substantial, though the path forward is still evolving. They emphasized that enterprise artificial intelligence is not a plug-and-play solution, requiring strategic execution.
Currently, revenue from AI-first offerings stands at 5.5%, a figure not significantly different from other firms that have disclosed similar metrics. The key risk identified is less about the opportunity itself and more about strategy and execution, as per the company's assessment. Analysts also highlighted that partnerships, such as with Anthropic, underscore the critical role of services companies in facilitating the enterprise AI shift.
UBS Cuts ITC Target to Rs 395, Highlights Pricing Strategy
UBS has issued a buy rating on ITC but reduced its target price to Rs 395 from Rs 420. Analyst checks with distributors indicated a range of imminent price hikes, which are now being implemented. Specifically, ITC's 84mm cigarettes are expected to be priced at Rs 24 per stick, up from Rs 17, following the steepest tax increase in this segment.
On the other end, 64mm cigarettes are anticipated to be priced at Rs 7 per stick, compared to Rs 5.9 earlier. The pricing for 69mm Goldflake, a major volume driver currently at Rs 9.5 per stick, remains unknown but is projected around Rs 12. This approach fully passes on price hikes in premium segments while minimizing increases in price-sensitive categories like 69mm and 64mm, likely keeping volume and EBIT impacts to a minimum.
Goldman Sachs Initiates Coverage on LG Electronics with Rs 1,750 Target
Goldman Sachs has initiated coverage on LG Electronics with a target price of Rs 1,750. Analysts believe the company is well-positioned to outpace industry growth in the near to medium term. This growth is attributed to shifting income cohort mixes and rising penetration, which should accelerate industry expansion in mid and premium products.
Additionally, LG's consistent track record of innovation is expected to sustain premiumization trends. The company's 'Global South' strategy is seen as a key enabler for improving exports while expanding manufacturing in India. However, analysts cautioned that rising competitive intensity in an environment of increasing commodity prices may limit margin expansion potential.
Morgan Stanley Issues Underweight Rating on Dabur with Rs 400 Target
Morgan Stanley has assigned an underweight rating to Dabur, with a target price of Rs 400. Analysts noted leadership changes, including the re-designation of Mohit Malhotra as Whole Time Director & Global CEO effective February 17, 2026. Herjit S Bhalla has been appointed as CEO of the India Business, effective April 15, 2026 or a mutually agreed date.
Bhalla brings over 25 years of experience across sales, marketing, and general management roles, which could influence the company's strategic direction moving forward.
HSBC Raises Aurobindo Pharma Target to Rs 1,415 on FDA Approval
HSBC has maintained a buy rating on Aurobindo Pharma, increasing the target price to Rs 1,415. This follows the company's receipt of US FDA approval for Adquey (difamilast 1%), a non-steroid topical treatment for atopic dermatitis. Analysts estimate that Adquey has the potential to become a $250-300 million brand.
However, they emphasized that Aurobindo Pharma will need to invest in specialist sales hires and that marketing execution will be crucial for the product's success in the US market.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips provided by experts are their own. These opinions do not represent the views of The Times of India or Bharat Horizon.
