Global investment banking and brokerage firm Goldman Sachs has initiated coverage on Rakesh Jhunjhunwala-backed Metro Brands over high growth prospects driven by the Sports & Athleisure (S&A) category business and key structural trends such as premiumization. The global brokerage has given a ‘buy’ rating for Metro Brands and sees an upside of 28 per cent on the stock in the next 12 month at a target price (TP) of ₹1,450.
Goldman Sachs has also initiated coverage on Bata India with a ‘neutral’ rating as sees a seven per cent upside on the stock at a TP of ₹1,470. ‘’We believe Metro Brands is better positioned with respect to key structural trends like premiumization and rising S&A penetration,” said Goldman Sachs in its report.
‘’Bata India’s new initiatives towards portfolio premiumization, increase in marketing spends etc. have not managed to revive growth yet (9MFY24 revenue growth vs pre-Covid at ~10 per cent vs ~80 per cent for Metro Brands),” it added.
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Published: 22 Mar 2024, 09:52 PM IST