** Avenue Supermarts Ltd surges as much as 18.4 pct to a record level of 1,218 rupees

** Goldman Sachs initiates coverage on stock with a "buy" rating and a target price of 1,586 rupees

** Goldman sees compound annual growth rate (CAGR) of 13 pct for co's sales per square feet in next 3 years; says operator of D-Mart supermarket chain will benefit from recent govt reforms on taxation and formalization of economy

** Brokerage sees EBITDA margin of 8.9 pct in FY20, up about 70 bps from FY17 as it further streamlines its low cost base and benefits from operating leverage

** Wider launch of co's omni-channel platform will increase its revenue throughput, but risks remain due to competition from e-commerce - Goldman Sachs

** Stock had gained 60.4 pct from its trading debut in March, as of last close on Monday

** Out of 8 analysts covering the stock, two rate it at "buy", three at "hold", while three rate it "sell" or lower; stock's median price target is 853 rupees - Thomson Reuters Eikon