OnlineEquityCalls.com

Aban Offshore
CMP: Rs 2,460.45
Target Price: Rs 3,600

Citigroup global Markets has reiterated its “buy” rating on Aban Offshore, saying the stock is attractively valued at 5.2 times estimated FY10 earnings. “The company offers an extremely attractive free-cash flow yield of 20% against 3-15% for peers (average 9%),” said a Citi note to clients.

Hindustan Unilever
CMP: Rs 245.15
Target Price: Rs 277

ICICI Bank
CMP: Rs 628.10
Target Price: Rs 1,010

Merrill Lynch has maintained its “buy” rating on the stock. According to Merrill, the stock may take a hit in the near term, owing to its $80-million exposure to Lehman, but after the 15% fall in past two days, the stock is trading at 08-0.9 times FY09 book value (assuming write down of Rs 10 a share).

Analysts’ pick: Zee Entertainment
CMP: Rs 208.90
Target Price: Rs 254

Kotak Securities has initiated coverage on the stock with an “accumulate”, saying the company has competitively-priced channels that encompass various genres of broadcasting, and also enjoy strategic positioning in its target markets.

Hindalco will open its Rs 5,000 crore rights issue on Monday amid the financial crisis in the global markets. The proceeds of the issue, which will close on October 10, will be utilised to part refinance the metals major’s earlier $3.03-billion bridge loan to acquire Canadian aluminium major Novelis. The Aditya Birla flagship purchased Novelis for an enterprise value of $6 billion last year.

Motilal Oswal has maintained its buy rating on Bharti Airtel with a target of Rs 1020 in its September 18, 2008 research report. “Bharti offers highest earnings visibility in the sector. Valuations at 9.5x FY09E and 7.5x FY10E EV/EBITDA are at lower end of its historical 9-15x EV/EBITDA band and attractive considering 2-year EBITDA CAGR of 1%. Maintain Buy,target of Rs 1020,” says Motilal Oswal’s research report.