Some major analysts downgraded, India's largest real estate company DLF's Share.
Goldman Sach..!
Goldman Sach removed from its Asia Pacific buy list and downgraded the stock to 'Neutral' from 'Buy' with a target prices of Rs 254, citing limited upside to operational estimates.
According to a Goldman Sach report, "DLF is up 36% since we added it to our buy list on August 25, 2011 versus the Sensex's rise of 7%. Going forward, we expect stock performance to be driven by improvement in quarterly sales velocity and pick-up in commercial leasing volumes, but we have limited visibility on the same currently,"
BNP Paribas..!
BNP Paribas has also downgraded DLF Ltd to 'Reduce' from 'Hold' citing concerns over projected asset sales which are unlikely to generate any significant value and would just meet DLF's cash requirement.
BNP Paribas said that besides high dilution risk, 2Q 2011-12 operational metrics should remain weak and an unfavourable judgment on the CCI (Competitive Commission of India) fine could further strain cash flows.
according to a BNP Paribas report, "We downgrade DLF to Reduce from Hold with a target price of Rs. 195 per share which is roughly 18% downside potential from current levels. We assume no growth in pricing over the next two years, an increase in costs by 5% and a cap rate of 11% for DLF".
DLF was one of the few stocks that actually closed above its 200-day EMA (Exponential Moving Average) recently and it is showing a kind of momentum.
Mumabai based one analyst said, ''Technicals are not corroborating with that view as far as DLF is concerned. Other stocks are looking somewhat better, but DLF definitely is a cut above the rest in the real estate pack. So I would rate it as a 'Buy' on declines.
Indicators..!
The leading indicators (like Stochastic & RSI) are also giving over bought signal of DLF. So, some profit booking is expected at the current level and the stock may go down to Rs. 209 to fill the gap. However, a move above Rs 250 is likely to take the stock higher to Rs 274 in the short term.
Keywords: DLF Share | Goldman Sach | BNP Paribas
Goldman Sach..!
Goldman Sach removed from its Asia Pacific buy list and downgraded the stock to 'Neutral' from 'Buy' with a target prices of Rs 254, citing limited upside to operational estimates.
BNP Paribas..!
BNP Paribas has also downgraded DLF Ltd to 'Reduce' from 'Hold' citing concerns over projected asset sales which are unlikely to generate any significant value and would just meet DLF's cash requirement.
BNP Paribas said that besides high dilution risk, 2Q 2011-12 operational metrics should remain weak and an unfavourable judgment on the CCI (Competitive Commission of India) fine could further strain cash flows.
according to a BNP Paribas report, "We downgrade DLF to Reduce from Hold with a target price of Rs. 195 per share which is roughly 18% downside potential from current levels. We assume no growth in pricing over the next two years, an increase in costs by 5% and a cap rate of 11% for DLF".
DLF was one of the few stocks that actually closed above its 200-day EMA (Exponential Moving Average) recently and it is showing a kind of momentum.
Mumabai based one analyst said, ''Technicals are not corroborating with that view as far as DLF is concerned. Other stocks are looking somewhat better, but DLF definitely is a cut above the rest in the real estate pack. So I would rate it as a 'Buy' on declines.
Indicators..!
The leading indicators (like Stochastic & RSI) are also giving over bought signal of DLF. So, some profit booking is expected at the current level and the stock may go down to Rs. 209 to fill the gap. However, a move above Rs 250 is likely to take the stock higher to Rs 274 in the short term.
Keywords: DLF Share | Goldman Sach | BNP Paribas
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