BSE stock gains 3% after Investec retains Buy, sees 50% potential upside

Investec has maintained its Buy rating on BSE Limited with a target price of Rs 1,270, implying 50 percent potential upside. The stock price gained nearly 3 percent intraday Thursday.

The research house expects several levers to support revenue momentum and investments in last few years to contribute meaningfully in FY19/20.

"We expect core EBIDTA (earnings before interest, tax, depreciation and amortisation) to grow at a CAGR Of 30-35 percent but cut core EBITDA estimates for FY19 by 4 percent to factor in higher expenses," said Investec that built in higher expenses for GIFT City & insurance venture.