India's ITC rises after Citi double-upgrades to 'buy'
INDA•ITC rose as much as 3.24% after Citi upgraded the shares to “buy” from “sell” and raised its price target to 300 rupees from 270 rupees, implying 16.7% upside.
1. Citi raises rating
Citi said near-term earnings are likely to remain under pressure after a sharp cigarette tax hike, but that the 34% year-to-date share-price correction reflects the associated impact on volume and profitability. It expects cigarette profitability to improve sequentially through financial year 2027 as pricing actions flow through, and said the earnings downgrade cycle is largely over.
