Hot Stocks: Brokerage view on Zomato, Star Health, Zydus Life and Nykaa

Brokerage firm Morgan Stanley maintained an overweight rating on Zomato while CLSA maintained a buy on Star Health. Also, Jefferies recommended a hold on Zydus Life and Morgan Stanley remained overweight on Nykaa.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Morgan Stanley on Zomato: Overweight| Target Rs 125

Morgan Stanley maintained an overweight rating on Zomato but raised the target price to Rs 125 from Rs 115 earlier.

The global investment bank is pulling forward profitability assumptions. The platform fee implemented by Zomato has been well adopted across its user base.

The global investment bank now expects Zomato to achieve adjusted EBITDA margins in food delivery of 4-5% in six quarters vs. by FY26/27 previously.

CLSA on Star Health: Buy| Target Rs 700

CLSA maintained a buy rating on Star Health with a target price of Rs 700. The brokerage feels insurers versus hospital tussle is increasing in India.

Star vs. hospitals: Resolution expected in a few weeks with limited impact.

Jefferies on Zydus Life: Hold| Target Rs 630

Jefferies maintained a hold rating on Zydus Life with a target price of Rs 630. The management believes that Zydus will not just do well in their current business operations but will evolve new lines of growth in the next 3-5 years.

New drivers will be based on vaccines, biosimilars in EM (including India), NCE/NBE, and complex generics for the US. The management believes that Asacol HD risks are overstressed.

Morgan Stanley on Nykaa: Overweight| Target Rs 173

Morgan Stanley maintained an overweight rating on Nykaa but slashed the target price to Rs 173 from Rs 175 earlier.

The survey indicates a structural increase in beauty spending which is now visible in India. The medium-term thesis on the beauty business continues to drive a positive view of Nykaa.

The recent sluggishness in the fashion business triggered an earnings cut for FY25-26.

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