Jubilant FoodWorks climbs after Morgan Stanley nearly doubles target price

Shares of Jubilant FoodWorks advanced over 4 per cent on Friday after Morgan Stanley upgraded its rating on the stock to ‘Overweight’ from ‘Equalweight’ and also raised its target price to Rs 1,780 from Rs 900.

According to the global financial services firm, the operator of Domino's franchise could benefit from demand trends which show quick-service restaurants remain favourable with same-store sales growth. Visibility on near-term growth recovery is also high for Jubilan Foodworks.

The scrip gained 4.16 per cent to end the day at Rs 1,543.50 on BSE. Shares of the company opened at Rs 1,524 and touched a high and low of Rs 1,552.35 and Rs 1,506, respectively.

Thirteen out of 30 analysts covering the stock have “Buy” or higher rating, 6 have “Hold” while 11 rate it at sell or lower, according to Thomson Reuters Eikon.

The brokerage hiked earnings per share (EPS) estimates by 19 per cent, 28 per cent and 28 per cent for FY 2018, FY 2019 and FY 2020 respectively.

Shares of Jubilant FoodWorks have jumped 7.49 per cent in the past one month, whereas benchmark BSE Sensex has declined 0.68 per cent during the same period.