It's the season to cheer for die-hard Satyam shareholders who have seen the stock touching rock bottom in January and hitting upper circuits in the last two trading sessions, as the company positively surprised the street with its financial results. Instantly, brokerages like JP Morgan and First Global have reinitiated coverage on the company after terminating their rating post the Raju scam.
Brokerage firm JP Morgan reinitiated coverage on the stock as it said in its report on Wednesday that said—we are initiating coverage on Satyam with an overweight rating and a June 10 P/E-based target of Rs100.
First Global, too has said in its report—company continues to do business and is still available for something close to a song. We reinitiate with a 'Buy' rating and a target price of Rs 110-120.
Besides, international brokerages are also bullish on the stock and expect the ADR to rally from current level of $3.64.
Trip Chowdhary, MD of equity research at Global Equities Research, said, "The revenue collection this year could be $1.8 billion. The stock can go upto $5."
The much talked about huge bench strength is also being seen as a big advantage by many analysts.
Vibhav Kapoor, group chief investment officer at IL&FS, said,
"Satyam has 5,000-7,000 extra workforce whose cost is being borne by the company without any extra revenue coming in. So as and when the business expands, these employees can be utilised profitably by the company and the margins on that bit of the business will be extremely high as the costs have already been factored in."
Unlike Enron or Worldcom that could never rise back again, Satyam has come out as a real company with solid financials and with Tech Mahindra in the driver's seat, many are expecting the stock to move up much higher and more brokerages are expected to follow suit by reinitiating their coverage of the stock.
source: NDTCPROFIT
Brokerage firm JP Morgan reinitiated coverage on the stock as it said in its report on Wednesday that said—we are initiating coverage on Satyam with an overweight rating and a June 10 P/E-based target of Rs100.
First Global, too has said in its report—company continues to do business and is still available for something close to a song. We reinitiate with a 'Buy' rating and a target price of Rs 110-120.
Besides, international brokerages are also bullish on the stock and expect the ADR to rally from current level of $3.64.
Trip Chowdhary, MD of equity research at Global Equities Research, said, "The revenue collection this year could be $1.8 billion. The stock can go upto $5."
The much talked about huge bench strength is also being seen as a big advantage by many analysts.
Vibhav Kapoor, group chief investment officer at IL&FS, said,
"Satyam has 5,000-7,000 extra workforce whose cost is being borne by the company without any extra revenue coming in. So as and when the business expands, these employees can be utilised profitably by the company and the margins on that bit of the business will be extremely high as the costs have already been factored in."
Unlike Enron or Worldcom that could never rise back again, Satyam has come out as a real company with solid financials and with Tech Mahindra in the driver's seat, many are expecting the stock to move up much higher and more brokerages are expected to follow suit by reinitiating their coverage of the stock.
source: NDTCPROFIT
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