Reduce Jubilant FoodWorks, target Rs 845: Nomura

Nomura maintains reduce rating on Jubilant FoodWorks and has also reduced its target price to Rs 845 from Rs 1065 earlier. The disappointing 4QFY16 results, with no near-term recovery in sight led to target price cut.

The global investment bank is worried about aggressive expansion in Domino's biz, mounting losses in Dunkin biz. The company's strategy of high price hikes plus macro conditions seem to holding back growth.

Nomura believes that period of negative earnings surprise is going to continue for the next few quarters.