(20 second reading) UBS reiterated its ‘buy’ for hotels giant Indian Hotels Company raising the target price to Rs.715, up 43% from its previous target of Rs. 500 per share. The revised target implies a potential upside of around 19% from the stock’s current market price of around Rs.600.
The analysts believe that the acceleration in earnings will be driven by operating and financial leverage. The brokerage firm also mentioned various growth drivers that could enhance revenue and profitability.
The brokerage added that “both earnings upgrades and embedded value of optionality should support the re-rating.