Avenue Supermarts hits peak after target upgrade; should you buy?
ETMarkets.com|
Feb 23, 2018, 11.15 AM IST
Avenue Supermarts set a fresh record at Rs 1,292.90 in morning trade after Goldman Sachs raised the price target on the stock.
The global brokerage house upped the target for the billionaire Radhakishan Damani-owned Avenue Supermarts to Rs 1,672, from Rs 1,611, with a Buy rating, citing higher store growth and lease mix.
It expects the company to open 24, 28 and 30 stores in FY19, FY20 and FY21, respectively.
However, Goldman Sachs cut FY19-21 (average) same-store sales growth assumption to 11.6 per cent, from 12.3 per cent earlier, as higher number of stores could “lead to some cannibalisation”.
Two of five brokerages rate the stock Buy or higher, one Hold and seven Sell or lower. Their median price target for Avenue Supermarts is Rs 1,003, according to Reuters.
The scrip was trading 2.91 per cent up at Rs 1,275 at around 10.40 am (IST) on the BSE. It opened at Rs 1,249.95 and touched high and low of Rs 1,292.90 and Rs 1,249.95, respectively. Benchmark Sensex jumped 160 points, or 0.47 per cent, to 33,978.73.
The share price has already more than doubled since its IPO debut in March 2017.
The global brokerage house upped the target for the billionaire Radhakishan Damani-owned Avenue Supermarts to Rs 1,672, from Rs 1,611, with a Buy rating, citing higher store growth and lease mix.
It expects the company to open 24, 28 and 30 stores in FY19, FY20 and FY21, respectively.
However, Goldman Sachs cut FY19-21 (average) same-store sales growth assumption to 11.6 per cent, from 12.3 per cent earlier, as higher number of stores could “lead to some cannibalisation”.
Two of five brokerages rate the stock Buy or higher, one Hold and seven Sell or lower. Their median price target for Avenue Supermarts is Rs 1,003, according to Reuters.
The scrip was trading 2.91 per cent up at Rs 1,275 at around 10.40 am (IST) on the BSE. It opened at Rs 1,249.95 and touched high and low of Rs 1,292.90 and Rs 1,249.95, respectively. Benchmark Sensex jumped 160 points, or 0.47 per cent, to 33,978.73.
The share price has already more than doubled since its IPO debut in March 2017.
