ITC a 'winner' despite 'lacklustre' spending in India: HSBC
Although HSBC said it expects discretionary spending in India to remain "lacklustre" amid a "challenging" economic environment, it says the recent correction in ITC makes it attractive.<br /><br />
HSBC upgraded ITC to "overweight" from "neutral" today, while maintaining its target price of Rs 40, citing prospects of earnings growth "resilience."
[caption id="attachment_1026199" align="alignleft" width="380"]
Reuters[/caption]
Although HSBC said it expects discretionary spending in India to remain "lacklustre" amid a "challenging" economic environment, it says the recent correction in ITC makes it attractive.
"Our strategy is to pick long term winners that still build in reasonable growth expectations and offer earnings growth resilience in this uncertain economic climate," HSBC said.
ITC shares were trading up nearly 1 percent at 10.04 a.m.
Reuters
