Cigna earnings beat by $0.04, revenue topped estimates
Investing.com - Investec (LON:INVP) downgraded Sapphire Foods India Ltd (NSE:SAPPHIRE) from Hold to Sell, while slightly raising its price target to INR330.00 from INR327.00.
The downgrade comes as Sapphire Foods, which operates Pizza Hut franchises in India, continues to face challenges including higher growth costs, subdued market conditions, and coordination issues with Devyani regarding the Pizza Hut franchise.
Investec analyst Harit Kapoor noted that while Sapphire’s initiatives to expand its product portfolio and meal opportunities beyond dinner are "in the right direction," the cost of driving higher growth is increasing due to value offerings and sustained higher delivery mix.
The investment firm maintained its 25x EV/EBITDA multiple but adjusted earnings projections downward to reflect medium-term weakness in the company’s performance.
Investec indicated that the current market price offers no upside potential, which, combined with sustained earnings weakness, prompted the more cautious stance on the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.