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Titan shares fall 4% over weak Q1 update, JPMorgan downgrades stock
Titan share price: Titan said that the weak business update was due to high gold prices, low wedding days and subdued consumer demand.
Shares of Titan Company slumped almost 4 per cent today (July 8) as the stock was downgraded by brokerage JPMorgan to 'neutral' from 'overweight' rating following the Tata group company's June quarter business update.
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The international brokerage cut its target price on Titan to ₹3,450 from ₹3,850 earlier as Titan's jewellery business posted a 9 per cent revenue growth in the June quarter. This fell short of already lowered expectations, as per JPMorgan.
Titan said that the weak business update was due to high gold prices, low wedding days and subdued consumer demand which have impacted overall growth.
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Meanwhile, CLSA maintained its "outperform" rating on Titan with a price target of ₹4,045 and noted that any correction as a result of a "rare soft result" should be seen as an opportunity to "accumulate". The brokerage said that it expects growth to return when gold prices normalise and wedding season arrives again.
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Goldman Sachs called Titan's quarterly update "disappointing" and the brokerage maintained its "buy" recommendation on the stock with a price target of ₹3,700.
