Global brokerages raise target price on Jubilant FoodWorks post Q2 results; see up to 26% upside

Global brokerage firms remain mixed, but Morgan Stanley, Credit Suisse, Jefferies, and HSBC raised the 12-month target price on Jubilant FoodWorks post Q2 results, data from Zee Business TV showed.

The most aggressive target price was put out by Morgan Stanley that remains an overweight rating with a 12-month target price of Rs 5,000 that translates into an upside of 26 per cent from Rs 3965 recorded on 20 October.

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Jubilant FoodWorks reported strong numbers in the second quarter of the financial year 2021-22 (Q2FY22) almost on all fronts while witnessing pressure on margins.

The growth in the fast-moving food chain company was mainly driven by economic activity normalising. It reported 33.2 per cent growth in Q2 EBITDA to Rs 2860 crore as compared to 2147 crore in a year-ago period during the same quarter.

EBITDA Margin slipped to 26 per cent from 26.7 per cent year-on-year basis in Q2 FY22, Jubilant FoodWorks said in a statement.

Also Read: Foodservice company reports positive numbers – Profit up 58%, margins dip
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Morgan Stanley: Overweight| Target: Rs 5000

Morgan Stanley maintains an overweight rating on Jubilant FoodWorks with a 12-month target of Rs 5000. The management reiterated its aim to become a multi-country, multi-brand, technology-driven QSR business.
 
The recent correction in the stock price could be a good buying opportunity for long-term investors.
 
Credit Suisse: Target raised to Rs 3800 from Rs 3130

Credit Suisse maintains a Neutral rating on Jubilant FoodWorks post September quarter results but raised its target price to Rs 3800 from Rs 3130 earlier.

Same-store-sales-growth (SSSG) trend underwhelming in the context of a strong consumer discretionary recovery post reopening. Dominos has a relatively lower market share in food delivery compared to dine-in.

Jefferies: Hold| Target raised to Rs 4100 from Rs 3850 earlier

Jefferies maintains a Hold rating on Jubilant FoodWorks post Q2 results but raised its 12-month target price to Rs 4100 from Rs 3850 earlier.

HSBC: Buy| Target raised to Rs 4650 from Rs 3650 earlier
 
HSBC maintains a buy rating on Jubilant FoodWorks post Q2 results but raised its 12-month target price to Rs 4650 from Rs 3650 earlier.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)