Starbucks' impact on Tata Global overstated: MStanley
Reuters Market Eye - Shares in Tata Global Beverages (TAGL.NS) fall 2.9 percent after Morgan Stanley downgrades the stock to "underweight" from "equal weight".
Tata Global shares have nearly doubled this year, partly on hopes about its outlook as the joint venture partner of Starbucks(SBUX.O), which has opened three coffee shops in India this year.
However, Morgan Stanley says the contribution from the Starbucks JV will be limited and recommends booking profits on Tata Global.
"The business suffers from poor earnings visibility, weak brand/market positioning, a lack of pricing power, sluggish revenue growth and mediocre return ratios," Morgan Stanley says about Tata Global in a note dated on Monday.
Morgan Stanley also adds: "Structurally this is one of the weakest businesses in our coverage universe."
- Tweet this
- Share this
- Digg this
- China not warlike, says Xi, as border standoff dominates India trip
- Modi calls for early settlement of China border issue
- Former New Zealand captain Martin Crowe suffers cancer relapse
- UPDATE 2-Border standoff dominates China Xi's visit to India
- Mars mission enters last lap; crucial test on Sept. 24
A standoff between Indian and Chinese soldiers overshadowed a visit to New Delhi by China's President Xi Jinping on Thursday, with a $20 billion investment pledge eclipsed by robust comments from Prime Minister Narendra Modi about the dispute. Full Article | Slideshow