India's Titan surges on gold rally, bullish Bank of America report
Reuters Posted online: Friday, Jun 20, 2014 at 0000 hrs
Shares in Indian jewellery maker Titan Co Ltd surge 4.2 percent after a rally in gold prices and on a bullish report by Bank of America Merrill Lynch. Gold eased on Friday on profit-taking after posting its biggest one-day rise in nine months, but the safe-haven metal was trading near April highs and set for its best week in three months on geopolitical tensions and a softer dollar. Bank of America maintains its "buy" rating on the stock and raises its target price to 406 rupees from 360 rupees, citing positive cash flow impact from the restart of gold leasing. The investment bank also says Titan has sharper growth and better return ratios ahead and can sustain its premium valuations compared with China's Chow Tai Fook Jewellery Group on which it has an "underperform" rating.