ITC share price up 4 after CLSA upgrades stock to buy

ITC share price up 4 after CLSA upgrades stock to buy

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.

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.