VBL

share price target: BofA maintains ‘Buy’ on Pepsi maker stock; sees strong capacity expansion, portfolio diversification

Varun Beverages share price target: Global brokerage firm Bank of America (BofA) has reaffirmed its “Buy” rating on Varun Beverages Limited and has set a target price of Rs 550 for the company’s shares based on its positive positioning in the upcoming summer season and expansion in capacity and cash flow. According to the brokerage, Varun Beverages is reportedly entering a crucial period of seasonal consumption during the summer season with substantial capacity addition already in place, which will allow it to serve the growing demand for beverages in an efficient manner. BofA noted that "the company’s cash flow profile has improved meaningfully, underpinned by disciplined capital allocation and improved operating efficiencies, giving the company greater flexibility to continue investing in growth initiatives while maintaining balance sheet strength."