The US brokerage cited the stock’s premium valuations and said expectations of high NIMs and opex could disappoint in the near-term. The stock trades at 2.2 times its forward price-to-book value – above its long-term average.
Citi initiates ‘Buy’ rating on Varun Beverages, sees 36% upside
Citi has given Varun Beverages a ‘Buy’ rating with a target price of Rs 800, citing strong market position and growth prospects. Despite this, shares