June 15, 2018 / 4:58 AM / 2 months ago

BUZZ-India's Avenue Supermarts slips; analysts wary high valuations

** Shares of Avenue Supermarts Ltd fall as much as 2.6 pct at 1,527.10 rupees, their lowest since June 6

** Avenue Supermarts posted 9 weekly gains of 11, but was set to post a decline this week

** Expensive valuations and limited scope for upside in near-term earnings estimate keep us on the sidelines - JP Morgan said in note after attending the company’s first investor meet post IPO

** JP Morgan hikes stock’s price target to 1,050 rupees from 895 rupees, but maintains “underweight” rating

** Higher expenses for the company’s entry into e-commerce, with competition rising, could be a risk to consolidated earnings - analysts

** More than 303,000 shares change hands compared with 30-day moving avg of about 1.8 mln shares

** Four of the 14 analysts covering the stock have a “buy” or higher rating, two have “hold” while eight rate it at “sell” or lower; median PT is 1,255 rupees - Thomson Reuters data

** Up to Thursday’s close, stock up about 33 pct this year

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