Overweight Indian Hotels, target Rs 120: JPMorgan

JPMorgan maintains an overweight rating on Indian Hotels with a 12-month target price of Rs 120. The asset sales momentum continues with OEH (Belmond) sell down. The estimated net debt reduction from the sale could be from Rs 47 billion to Rs 35 billion on pro forma basis, said the global brokerage firm.

The rundown of US investment portfolio is positive, but the global investment bank awaits clarity on Pierre, NY. JPMorgan expects demand Supply to turn favorable in FY17. If the ARR hikes come up in 2H17, then there could be room for re-rating, said the JPMorgan note.