India's FirstCry jumps as MS initiates with 'Overweight'

Brainbees Solutions

19/09/2024 05:59

** Shares of FirstCry parent Brainbees Solutions  BRAE.NS 
climb as much as 7.3%, its biggest single-session pct rise
    ** Stock last up 1.8% to its highest in a month 
    ** Morgan Stanley (MS) initiates coverage with "Overweight",
price target of 818 rupees - a ~28% premium on last close 
    ** MS says Brainbees is well placed to capitalise on India's
growing childcare market through its FirstCry brand
    ** Expects domestic revenue to rise at 18% CAGR over next
three years, led by 14% growth in transacting customers, 4%
average order value growth
    ** MS sees senior management exits, changes in competitive
landscape among key risks 
    ** We believe current valuations indicate further upside -
MS
    ** Stock has fallen ~4% since trading debut on Aug. 13

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))