Morgan Stanley starts Asian Paints at 'overweight'
Reuters Market Eye - Morgan Stanley initiated coverage of Asian Paints Ltd (ASPN.NS) with an "overweight" rating and a target price of 5,220 rupees.
The investment bank says the paint maker will enjoy "strong" revenue growth, with gross margins expected to expand by 300 bps in fiscal years 2012-2015.
Asian Paints also deserves a premium in terms of valuations, Morgan Stanley says.
"We think competitors are unlikely to match its distribution reach and logistics strength over the next five years," the bank writes in a note, dated Thursday.
"And we believe valuations should be viewed in the context of earnings resilience, improving return ratios, better payout ratios, and successful innovations," Morgan Stanley adds.
Asian Paints shares up 0.8 percent at 4,311.50 rupees.
(Reporting by Manoj Dharra)
- Tweet this
- Share this
- Digg this
- UPDATE 3-Avalanche kills at least 12 guides in deadliest incident on Mount Everest
- UPDATE 10-Vice-principal of South Korea school in ferry disaster commits suicide
- Avalanche kills at least 12 guides in deadliest incident on Mount Everest
- India passes halfway mark in election with BJP gaining strength
- Vice-principal of South Korea school in ferry disaster commits suicide
Nitin Gadkari, former president of the Bharatiya Janata Party and a member of the BJP’s manifesto committee, speaks to Reuters. Here are the edited excerpts. Full Article