Avenue Supermarts hits peak after target upgrade; should you buy?
Two of five brokerages rate the stock Buy or higher, one Hold and seven Sell or lower.
By ETMarkets.com | Updated:
Others
Avenue Supermarts set a fresh record at Rs 1,292.90 in morning trade after Goldman Sachs raised the price target on the stock.
The global brokerage house upped the target for the billionaire Radhakishan Damani-owned Avenue Supermarts to Rs 1,672, from Rs 1,611, with a Buy rating, citing higher store growth and lease mix.
It expects the company to open 24, 28 and 30 stores in FY19, FY20 and FY21, respectively.
However, Goldman Sachs cut FY19-21 (average) same-store sales growth assumption to 11.6 per cent, from 12.3 per cent earlier, as higher number of stores could “lead to some cannibalisation”.
Two of five brokerages rate the stock Buy or higher, one Hold and seven Sell or lower. Their median price target for Avenue Supermarts is Rs 1,003, according to Reuters.
The scrip was opened at Rs 1,249.95 and touched high and low of Rs 1,306 and Rs 1,249.95, respectively, eventually closing at Rs 1,300.20, up 4.94 per cent. Benchmark Sensex jumped 323 points, or 0.95 per cent, to 34,142.15.
The share price has already more than doubled since its IPO debut in March 2017.
The global brokerage house upped the target for the billionaire Radhakishan Damani-owned Avenue Supermarts to Rs 1,672, from Rs 1,611, with a Buy rating, citing higher store growth and lease mix.
It expects the company to open 24, 28 and 30 stores in FY19, FY20 and FY21, respectively.
However, Goldman Sachs cut FY19-21 (average) same-store sales growth assumption to 11.6 per cent, from 12.3 per cent earlier, as higher number of stores could “lead to some cannibalisation”.
Two of five brokerages rate the stock Buy or higher, one Hold and seven Sell or lower. Their median price target for Avenue Supermarts is Rs 1,003, according to Reuters.
The scrip was opened at Rs 1,249.95 and touched high and low of Rs 1,306 and Rs 1,249.95, respectively, eventually closing at Rs 1,300.20, up 4.94 per cent. Benchmark Sensex jumped 323 points, or 0.95 per cent, to 34,142.15.
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The share price has already more than doubled since its IPO debut in March 2017.
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