Shares of Apollo Tyres jumped as much as 6.4% to their day’s high of Rs 468 on the BSE on Monday after international brokerage UBS upgraded the stock to Buy from Neutral and raised its target price to Rs 590 (34% upside) from Rs 580, noting that the company continues to trade at a valuation discount to peers and has underperformed the sector over the past four years.
The brokerage sees an improving outlook as management takes concrete steps to strengthen the India business, including investments in brand building such as the Indian cricket team jersey sponsorship, while prospects for the Europe business are also becoming more constructive.
