Share price of ITC surged over 4% on Monday after brokerage house CLSA upgraded the stock to 'buy'. The brokerage has upgraded the stock from Outperform to Buy with a target at Rs 220 per share.
Following the update, shares of ITC climbed 4.38% to an intraday high of Rs 175.2 on BSE against the last closing of Rs 167.85. ITC stock opened at Rs 169.95 and also touched an intraday low of Rs 169.95.
The stock has gained 2.5% in last 2 days. However, share price has fallen over 28% since the beginning of the year.
Currently, the stock trades higher than its 5 day moving averages but lower than 20, 50, 100 and 200-day moving averages.
Market capitalisation of the large-cap stock stood at Rs 2,10,231.55 crore, as of today.
CLSA said it sees a positive outlook with compelling valuations for ITC. It expects FMCG to deliver an EBITDA CAGR of 30 per cent in FY20-23, adding that long-term positives are unfolding for the firm as revenue diversifies.
According to the research firm, ITC's legacy cigarette business is providing cash to meet its ambitious goals. The FMCG segment is set to become a major value driver in the future, it said.