Dixon Tech, Tata Steel & more: Top stocks to watch on February 20

CLSA has downgraded Dixon Technologies to hold from outperform with the target price cut to Rs 12,100 from Rs 15,800 earlier. Analysts said the memory industry is entering a super cycle, driven by AI’s appetite for high-bandwidth memory (HBM) and DDR5, while mainstream storage faces tightening supply and rising costs. India’s dependence on imports leaves it exposed to this global squeeze, especially as memory manufacturers prioritise high-margin AI-grade memory. As a result, memory prices have already surged. They believe smartphone volumes are at risk, as rising memory costs could inflate average selling prices by 10-25%, disproportionately impacting the lower-end consumer segment. Analysts downgraded the stock given risks to low-end smartphone volumes and concerns around medium-term growth visibility.Jefferies has a buy on Alkem Labs with the target price at Rs 6,550. Analysts said the management recently discussed their Medtech strategy and recent Occlutech acquisition. Taking the inorganic route, Alkem has built divisions over two years and has focused on ortho and now cardiac segments. The company now plans to consolidate these acquisitions and scale up its business organically. Though nascent at present, over the next five years the management envisions Medtech sales of Rs 1,000 crore and 20-25% earnings before interest, taxes, depreciation and amortisation (EBITDA) margins.Motilal Oswal Securities has a buy on Tata Steel with the target price at Rs 240. Analysts said they remain constructive on the back of a strong domestic demand outlook, safeguard duty-led price support, ongoing capacity expansions and a gradual turnaround in its EU business. They expect capacity expansion to drive Tata Steel’s earnings amid demand upswing. They also expect steel prices to recover, backed by safeguard duty, Carbon Border Adjustment Mechanism (CABM) and China’s supply discipline. Analysts are also expecting breakeven for European operations.Citigroup has a buy on LIC Housing with the target price at Rs 730. Analysts feel that the company’s stock is the least expensive and the company is conspicuously overlooked as a housing finance company following pronounced underperformance across 3/6/12 months. Its current price embeds conservative 11.5% return on equity (RoE)/4% loan growth medium-to-long-term assumptions, creating a compelling entry valuation for patient capital. The management is actively recalibrating strategy, enhancing distribution, elevating agent productivity, scaling direct/lead generation, exploring co-lending, and expanding capacity in the self-employed and affordable segments. Analysts feel risk-reward looks compelling for the stock with limited downside.Goldman Sachs has a buy on Eicher Motors with the target price raised to Rs 9,200 from Rs 8,600 earlier. Analysts feel post the GST cuts in Sept 2025 on sub 350cc motorcycles, Eicher’s Hunter 350cc has steadily re-rated to a 20k per month volume run rate in the domestic market (vs 15k per month 12 months ago). They also expect part of the announced capacity acceleration over next 24 months to support more volume growth on Hunter 350cc (especially heading into a pay commission phase in FY28 and beyond). Analysts raised the company’s earnings per share (EPS) estimates for FY26 to FY28 by up to 3%.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)