ANALYST VIEWS

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Mercator Lines has target of Rs 140-149
Technical Analyst, Rajat K Bose is of the view that one will see Mercator Lines going up much further from here. Over the medium-term, my target would be something like Rs 140 to about Rs 149 and if it crosses that then even further higher levels of say Rs 163 to Rs 165 could be possible. In fact above Rs 110 there has been a breakout and chances are that one will see Mercator Lines going up much further from here. Over the medium-term, my target would be something like Rs 140 to about Rs 149 and if it crosses that then even further higher levels of say Rs 163 to Rs 165 could be possible. The chart pattern suggests a strong bullishness over the medium-term.
[source: moneycontrol]

Buy Firstsource Solutions, target of Rs 66
PINC Research has maintained its buy rating on Firstsource Solutions with a 12-month price target of Rs 66 in its May 14, 2008 research report. "Firstsource Solutions Ltd. (FSL) reported sales of Rs 3.8 billion in Q4FY08, a flat QoQ growth. However, operating profits posted a 7.4% QoQ rise to Rs 622 million, as the previous quarter had one-off items. Net profit growth, though was subdued due to a provisioning for FCCB’s (Rs 195.6 million) which resulted in only a 1.9% QoQ growth to Rs 210 million."

"At the CMP of Rs 40, FSL is trading at a P/E of 14.3x and EV/EBIDTA of 7.6x. Though FSL could face short term uncertainties in key segments we continue to believe that its offerings are expected to witness greater traction due to the under penetration of outsourced BPO services. Hence, as FSL possesses proven capabilities to capture these opportunities, it has the potential to report robust earnings growth and stable free cash flows which should enable its valuations to align with that of its global peers. Thus, we maintain our ‘BUY’ recommendation with a 12-month price target of Rs 66," says PINC's research report.
[source: moneycontrol]