Jubilant FoodWorks rallies post Goldman Sachs upgrade
NEW DELHI: Jubilant FoodWorks rallied over 5 per cent in the first ten minutes of morning trade on Thursday, after Goldman Sachs upgraded the stock to ‘buy’ from neutral earlier.
The global investment bank also raised its 12-months target price to Rs 1,228 from Rs 902 earlier which translates into an upside of over 20 per cent from Wednesday's closing price of Rs 1,003.20 on the BSE.
The global investment bank is of the view that the stock valuation has yet to factor in two key positive changes. First is less competitive intensity with delivery start-ups focusing more on profitability and the other is emphasis on SSSG over store expansion via store opening rationalisation.
Goldman Sachs forecast a 21 per cent EBITDA CAGR in FY16-20E. The stock is trading at its lowest premium which makes it more attractive.
The global investment bank also raised its 12-months target price to Rs 1,228 from Rs 902 earlier which translates into an upside of over 20 per cent from Wednesday's closing price of Rs 1,003.20 on the BSE.
The global investment bank is of the view that the stock valuation has yet to factor in two key positive changes. First is less competitive intensity with delivery start-ups focusing more on profitability and the other is emphasis on SSSG over store expansion via store opening rationalisation.
Goldman Sachs forecast a 21 per cent EBITDA CAGR in FY16-20E. The stock is trading at its lowest premium which makes it more attractive.
