Deutsche starts United Spirits with 'buy' rating
MUMBAI (Reuters) - Deutsche Bank initiated coverage of United Spirits with a "buy" rating, citing it 53 percent market share in the Indian spirits market, the significant entry barriers to foreign players, and the benefits from its deal to sell a majority stake to Diageo.
The investment bank said Diageo Plc (DGE.L) would bring "much-needed financial prudence" to United Spirits Ltd (UNSP.NS), which should improve profitability and cash flows.
Deutsche set its 12-month price target at 2,700 rupees.
United Spirits shares were up 1.5 percent at 1,788 rupees as of 10:06 a.m.
(Reporting by Abhishek Vishnoi and Manoj Dharra)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Monetary Policy Committee
Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India's government and central bank remain at odds over how crucial decisions are made. Full Article
PM Modi to ramp up help for Indian Ocean nations to counter China influence Full Article