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Investing.com - JPMorgan initiated coverage on Indian Hotels Company (NS:IH) with an overweight rating and a price target of INR890.00, implying a 16% upside potential.
The stock has delivered four times returns since mid-2019 compared to the NIFTY’s 1.1 times but has lagged year-to-date, falling 13% while the index gained 6%, according to JPMorgan’s analysis.
The investment bank views the recent stock weakness as temporary, expecting it to abate due to better-than-expected RevPAR growth in fiscal year 2026, reversal of recent consensus EPS cuts, and strong first-quarter fiscal year 2026 performance off a low base.
JPMorgan forecasts mid-teens revenue CAGR over fiscal years 2025-2028 and annual margin expansion of 100 basis points to over 36% by fiscal year 2028, with return on capital employed reaching above 19% by fiscal year 2028.
The price target implies a price-to-earnings multiple of 45 times and an EV/EBITDA multiple of 28 times, representing approximately a 10% discount to current 12-month forward valuations, which JPMorgan suggests indicates upside risk to earnings delivery.
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