ITC share price up 4% after CLSA upgrades stock to buy, expects EBITDA CAGR of 30% in FY20-23

ITC share price jumped 4 percent in the morning trade on October 12 after CLSA upgraded the stock to buy.

The research firm has upgraded the stock to buy from outperform with the target at Rs 220 per share. It is of the view that the FMCG firm’s long-term positives are unfolding as revenue diversifies and the FMCG segment is set to become a major value driver, CNBC-TV18 reported.

ITC’s legacy cigarette business is providing cash to meet its ambitious goals. It expects FMCG to deliver an EBITDA CAGR of 30 percent in FY20-23, adding that value-accretive acquisitions and improving capital allocation will provide support.

The stock was trading Rs 6.60, or 3.93 percent, higher. It has touched an intraday high of Rs 174.50 and an intraday low of Rs 169.95.

According to Moneycontrol SWOT Analysis powered by Trendlyne, the company has been able to generate net cash – improving net cash flow for last 2 years with book value per share improving for last 2 years.

However, Moneycontrol technical rating is bearish with moving averages and technical indicators being neutral.

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