India's Devyani International jumps on news of $129 mln deal Thailand entry

Devyani International

19/12/2023 06:16

** Shares of India KFC operator Devyani International
 DEVY.NS  rise as much as 7.9% to 197.50 rupees
    ** Co said it will operate KFC outlets in Thailand after
acquiring Restaurants Development Co in deal worth $128.9 mln
    ** Analysts at Jefferies raise PT on DEVY to 190 rupees, a
~4% premium to its last close
    ** Jefferies sees modest growth for co post announcement;
see valuations of acquisition at a discount to DEVY's own
valuations 
    ** Maintains "hold" rating on DEVY
    ** Given muted demand trends in KFC India, macroeconomic
concerns, we maintain REDUCE rating with PT of 165 rupees -
Emkay 
    ** Avg rating of 15 analysts on DEVY at "buy"; median PT is
200 rupees vs current price of 190.80 rupees - LSEG
    ** Stock last up 4.2%, YTD gains at 5.5%


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