Trent’s stock plunged 8% yesterday and is down 26% year-to-date, prompting Bernstein to revise its target price to Rs 6,900 from Rs 8,100, while maintaining an ‘Outperform’ rating. The brokerage believes the recent selloff is an overreaction, and that Trent’s long-term fundamentals remain strong.
Q3FY25 results were a mixed bag, with store expansion picking up pace, which is seen as a key positive. Revenue growth and margins were strong, but same-store sales growth (SSSG) remained a disappointment, leading to market concerns. Bernstein noted that the SSSG weakness could be attributed to consumer discretionary slowdown, but believes that Trent remains well-positioned to benefit from a demand recovery.
The brokerage emphasized that Trent’s expansion strategy, particularly with Westside and Zudio, should drive future growth, making the stock’s current correction a buying opportunity.
