Trent shares recorded notable gains on June 18 as investors welcomed bullish notes issued by brokerages for the stock. The shares of the company gained over 2 percent to hit an intraday high of Rs 5,740 apiece.
Morgan Stanley maintained its 'Overweight' view on Trent shares, and kept a target price of Rs 6,359 apiece for the stock. This implies an upside potential of over 13 percent from the previous closing price of Rs 5,626 apiece.
The international brokerage noted that the Tata Group-company's management remains confident of achieving 10x growth target, which was set in 2023, while balancing profitability. Estimates also model 10x revenue growth from FY23 to FY32, it added.
Citi meanwhile maintained its 'Buy' call, with a target price of Rs 7,600 apiece, NDTV Profit reported. This implies a strong upside potential of over 35 percent from the stock's previous closing price.
The company's plan to expand store count by 200 per year is possibly doable while ensuring quality, economics and location, the report quoted the brokerage as saying. It added that Trent's new stores reach very high throughput within 12-24 months of opening.
Despite today's gains, Trent shares have dropped nearly 20 percent in the past six months. The stock however rose nearly 7 percent in the past one year. It is currently 31 percent lower than its 52-week high of Rs 8,345 apiece, and 27 percent higher than its 52-week low of Rs 4,488 apiece.
Over 5 lakh shares of the company were involved in active trade today so far, according to data on the NSE seen at 1.38 pm. The stock has a P/E ratio of over 138.
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