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Analyst’s Picks: UNITED SPIRITS

This article was posted on Feb 14, 2009 and is filed under Stock Research

Citigroup Global Markets has reaffirmed its ‘sell’ rating on United Spirits, with a price target of Rs 454. “The recent sharp deterioration in profitability and the sequential volatility in operating profits have highlighted that USL’s business is far more cyclical than earlier envisaged.

UNITED SPIRITS
CMP: Rs 688.35
TARGET PRICE: Rs 454

Around 90% of the promoter stake being pledged remains an overhang and a significant concern,” the Citi note to clients said. “Stake sale in USL would be a positive, though the timing and the pricing remain uncertain,” it added.

source: Economictimes

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