HSBC has upgraded ITC Ltd to "overweight" from "neutral", while maintaining its target price of 400 rupees, citing prospects of earnings growth "resilience."
Although HSBC said it expects discretionary spending in India to remain "lacklustre" amid a "challenging" economic environment, it said the recent correction in ITC makes it attractive.
"Our strategy is to pick long term winners that still build in reasonable growth expectations and offer earnings growth resilience in this uncertain economic climate," HSBC said.
ITC shares were trading up nearly 1 per cent at 10.04 a.m.
Copyright: Thomson Reuters 2013
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