Jubilant FoodWorks Surges to 52-Week High as Jefferies Raises Price Target by 25%
2nd Jan 2025
Jubilant FoodWorks Stock Performance and Valuation
Shares of Jubilant FoodWorks Ltd. touched a fresh 52-week high on Thursday, gaining 2% to reach Rs 755.30 on the BSE. The stock has risen 35.07% in the past year and 2% since the beginning of 2023, with a market capitalization of Rs 49,765 crore. However, the stock's relative strength index (RSI) of 73.6 indicates it is currently overbought.
Jefferies' Positive Outlook and Revised Price Target
The rally was fueled by global brokerage Jefferies raising its price target on Jubilant FoodWorks to Rs 1,000 from the earlier Rs 800, while also issuing a 'High Conviction Buy' rating on the stock. Jefferies expects an improvement in the company's outlook, particularly in same-store sales, which are expected to grow in the mid to high single-digit range. The brokerage also believes that Jubilant Food's margins have reached their lowest point and are poised for further improvement.
Analysts' Recommendations and Expectations
In addition to Jefferies, HDFC Securities has also raised its price target on Jubilant FoodWorks to Rs 690 from the previous Rs 650, maintaining an 'add' call on the stock. The brokerage expects Jubilant FoodWorks to report strong operational numbers in FY25, as the recovery in same-store sales growth and cost optimization measures could aid margin improvement.
Shares of Jubilant FoodWorks Ltd. touched a fresh 52-week high on Thursday, gaining 2% to reach Rs 755.30 on the BSE. The stock has risen 35.07% in the past year and 2% since the beginning of 2023, with a market capitalization of Rs 49,765 crore. However, the stock's relative strength index (RSI) of 73.6 indicates it is currently overbought.
Jefferies' Positive Outlook and Revised Price Target
The rally was fueled by global brokerage Jefferies raising its price target on Jubilant FoodWorks to Rs 1,000 from the earlier Rs 800, while also issuing a 'High Conviction Buy' rating on the stock. Jefferies expects an improvement in the company's outlook, particularly in same-store sales, which are expected to grow in the mid to high single-digit range. The brokerage also believes that Jubilant Food's margins have reached their lowest point and are poised for further improvement.
Analysts' Recommendations and Expectations
In addition to Jefferies, HDFC Securities has also raised its price target on Jubilant FoodWorks to Rs 690 from the previous Rs 650, maintaining an 'add' call on the stock. The brokerage expects Jubilant FoodWorks to report strong operational numbers in FY25, as the recovery in same-store sales growth and cost optimization measures could aid margin improvement.