Edelweiss Financial Services dips 6% as Credit Suisse downgrades, cuts price target

Credit Suisse slashed price target on Edelweiss to Rs 180 from Rs 345 earlier, implying 13.2 percent downside from January 25's levels.

Edelweiss Financial Services shares fell 6 percent intraday Monday after global brokerage house Credit Suisse downgraded the stock to neutral from outperform, citing higher provisioning cover.

The research firm also slashed price target on the stock to Rs 180 from Rs 345 earlier, implying 13.2 percent downside from January 25's levels.

The stock was quoting at Rs 150.90, down Rs 8.10, or 5.09 percent on the BSE, at 11:50 hours IST.

Credit Suisse expects EPS decline of 30-40 percent over next three years.

Recent stock price correction, high liquidity on balancesheet & high levels of provisioning cover provide downside support, it said.

Last week, Edelweiss posted a fall of 4 percent (year-on-year) in its net profit for the December quarter at Rs 226.11 crore.

The consolidated revenue jumped 26 percent to Rs 2,776 crore against Rs 2,205.5 crore during the corresponding quarter of last year.

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