ITC: Brokers retain ITC price targets after Q2 results

Mumbai: Most broking firms retained their price targets on ITC after the company announced its second quarter results. Analysts said the scope for sharp upsides from current levels is limited citing the recent runup in the share price and slowing earnings growth.

ITC shares fell 2.75% to close at Rs 438 on Friday. The average price target on ITC of all analysts compiled by Bloomberg following the second quarter results is at Rs 509.33, implying an upside of almost 16% over Friday’s closing.

“The recent stock run-up and limited earnings surprise scope given higher base limit further rerating potential,” said HDFC Securities in a note. ITC shares have gained nearly 32% so far in 2023 as against a 13% advance in the Nifty Consumption Index.

Brokers Retain ITC Price Targets After Q2 Results

Jefferies

  • Overall Q2 earnings miss due to paperboards; likely to get better
  • Valuation at 25 times P/E appears palatable in a sector, which enjoys excessive premium

Investec

  • High earnings growth phase now likely behind us and hotel demerger trigger also played out
  • Expect ITC to resume position as a steady high single to low double-digit earnings growth play over three years

BNP Paribas

  • Part of our ‘affluent India stock list’ and remains one of its top picks among Indian consumer companies
  • Offers an attractive dividend yield and its price to earnings ratio is at an attractive discount to peers

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment