Re: {LONGTERMINVESTORS} Re: ITC.....Thread

 Citi on ITC

* Upgrade to Buy
* We upgrade ITC to Buy (from Neutral) with Rs390 TP (vs. Rs335) as we roll forward to 26x FY18E EPS (vs. 24x Sept17E) after 4QFY16 results. 
* We see a very gradual re-rating driven by 3 factors:
a) legislative headwinds somewhat abating (though there's still a GST overhang);
b) the meaningful downward mix shift to <65mm is reflected in the base;
c) coinage impact on key brands should subside over next 12 months.
* Valuations are supportive – stock is trading at 22.5x on our FY18E ests, ~33% discount to the broader consumer sector.

CLSA on ITC
* Raise target to `400 from `370, Maintain Buy
* Cigarette EBIT growth at double digits after five quarters
* Flat YoY Cigarette volumes better than estimate of decline
* Other businesses continued to show mixed trends, with decent expansion in FMCG
* Expect acceleration in ITC's earnings growth to 10% over FY17-18

Morgan Stanley on ITC
* Maintain Overweight, Target `395
* Strong cigarette business performance may catalyze stock re-rating
* ITC reported cigarette volume growth of 0-1% for the quarter
* Growth compares to our and the market's expectation of a 2-3% volume decline
* Surprised by the ability to capture cigarette volumes amid muted pricing growth
* Strong cigarette volume growth increases the probability of marginal price hikes in 2HF17

Macquarie on ITC
* Raise target to `385 from `360, Maintain Outperform
* Cigarette volumes grew 0-1% in 4QFY16; Volume growth after 11 quarters
* Revenue growth and margins in the non-cigarette businesses remained weak
* View the turnaround in cigarette volume growth as a significant positive
* ITC is trading at 19.5x which is 35-40% discount to FMCG peers

Credit Suisse on ITC
* Raise target to `385 from `370, Maintain Outperform
* Cigarettes had a good quarter after a long time; Others see recovery
* Concerns around price hike delays likely to be addressed soon
* EBITDA grew 14% over last year; which was the strongest growth in over 7 quarters
* Best cigarette performance in 11 quarters clearly suggests that the business is stabilising
* FMCG is now clearly profitable for the full year; Hotels & Paper see +ve EBIT growth
* ITC is now well poised for double-digit earnings growth in FY17

Deutsche Bank on ITC
* Maintain Buy, Target `400
* Flat cigarette volumes vs consensus expectation of a -3% decline was key highlight
* Uncertainty regarding the taxation structure under GST is an overhang
* Factor in 3%/5% cigarette volume growth in FY17/FY18

IDFC on ITC
* Upgrade to Outperformer, Target `390
* Improvement in Cigarette volumes is a key positive
* Consumer starting to acclimatize to the higher pricing across cigarettes categories
* ITC will look to balance volume growth and profitability going forward
* ITC is our is top large cap staples pick

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