Citi downgrades ICICI Securities to 'sell'
Mumbai: Citigroup Global Markets has downgraded ICICI Securities to 'sell' from 'buy' and slashed target price to Rs 230 from Rs 290.
The investment services arm of ICICI Group on Monday reported a 34.3% decline in consolidated profit to Rs 101.1 crore for the third quarter ended December.
"We cut estimates by 18%/26% for FY19/20 as we lower broking and distribution incomes and downgrade to Sell as we expect revenue pressure to stay," said Citigroup.
CLSA has also cut target price on ICICI Securities to Rs 360 from Rs 380.
"We lower our earnings forecasts for I-Sec to factor in weaker capital markets and tightening of regulations on mutual fund distribution fees that gets implemented from FY20 onwards. Unlike other Indian financials, I-Sec trades at par with global averages and improvement in revenue outlook/ lower revenue volatility can drive rerating," said CLSA.
The investment services arm of ICICI Group on Monday reported a 34.3% decline in consolidated profit to Rs 101.1 crore for the third quarter ended December.
"We cut estimates by 18%/26% for FY19/20 as we lower broking and distribution incomes and downgrade to Sell as we expect revenue pressure to stay," said Citigroup.
CLSA has also cut target price on ICICI Securities to Rs 360 from Rs 380.
"We lower our earnings forecasts for I-Sec to factor in weaker capital markets and tightening of regulations on mutual fund distribution fees that gets implemented from FY20 onwards. Unlike other Indian financials, I-Sec trades at par with global averages and improvement in revenue outlook/ lower revenue volatility can drive rerating," said CLSA.
