Sell Asian Paints, target Rs 900: CLSA

CLSA downgraded Asian Paints to high conviction sell post March quarter results with a 12-month target price of Rs 900. The current valuations ignore some imminent earning risks, said the global investment bank.

The stock rallied 30 per cent in the last 1 year and valuations at 47x 17 PE looks expensive. CLSA slashed EPS by 4% to 8% on recent surge in crude and tough competition. Strong stock return possible, but most of the good news is already in the price now.