Standout Brokerage Report: JPMorgan upgrades Nalco, downgrades Hindalco

There is an interesting recommendation change by JPMorgan on metals packs. They have upgraded Nalco to an ‘overweight’; they have downgraded Hindalco Industries to ‘neutral’ and they remain ‘overweight’ on Vedanta.

On Nalco JPMorgan have raised target price to Rs 158 from 104. It has rallied over 100 percent in the last one year. JPMorgan expect higher earnings to translate into higher dividends and they expect consensus earnings upgrades going forward.

After a long ‘overweight’ on Hindalco, JPMorgan have now downgraded the stock to ‘neutral’. They believe the risk-reward is not favourable now after a big upmove and hence downgrade on Hindalco.