Trent share price: Morgan Stanley sees 15% upside despite PAT miss, notes margin resilience
By Arunika Jain Published on April 30, 2025, 08:33 IST
Morgan Stanley has reiterated its Overweight call on Trent Ltd., setting a target price of ₹6,359 per share, indicating a potential upside of nearly 15% from the current market price of ₹5,510.00.
The brokerage noted that Trent's Q4FY25 performance was a mixed bag, with mid-single-digit like-for-like (LFL) growth in the fashion segment and a more-than-expected gross margin compression, which may signal inventory write-offs. These factors contributed to a 17% miss on profit after tax, largely due to associate losses.
Despite these concerns, Morgan Stanley highlighted a beat on EBITDA margins, suggesting improved operational efficiency and cost controls. The brokerage maintained confidence in the company's long-term retail growth story, backed by its brand positioning and scale-up of formats like Zudio and Westside.
Trent shares may see movement in the near term as investors balance margin resilience against concerns on inventory and profitability.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at BusinessUpturn.com. You can write to her at [email protected]
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 hours ago
- Business Insider
CrowdStrike Stock Tumbles: Here's What Morgan Stanley Predicts Next
CrowdStrike (NASDAQ:CRWD) stock had surged more than 40% year-to-date heading into its first fiscal quarter report, with its elevated valuation setting a high bar for performance. However, the results fell short, and shares tumbled ~6% in Wednesday's trading session. Confident Investing Starts Here: Revenue climbed 19.4% year-over-year to $1.1 billion but still fell $10 million short of Wall Street's expectations. According to management, subscription revenue took an $11 million hit, largely due to hurdles tied to Customer Commitment Packages (CCP), driven by one-off customer incentives and special partner programs. These headwinds aren't going away just yet – management expects a continued drag of $10 to $15 million per quarter over the next three periods. On a brighter note, the bottom line came through: adjusted EPS landed at $0.73, outpacing the Street's forecast by $0.07. But the outlook also failed to please. For the current quarter, CrowdStrike sees revenue landing in the range between $1.145 billion and $1.152 billion, falling short of the $1.16 billion consensus estimate. According to Morgan Stanley's Keith Weiss, the biggest sticking point wasn't the miss on revenue or guidance, but rather the net new annual recurring revenue (NNARR). Despite an 11% beat versus consensus – even better than the average ~8% beat seen over the past year – the figure didn't quite meet the buy-side's elevated hopes, especially with the stock trading at a steep 50x EV/CY27 free cash flow. However, Weiss, who ranks among the top 2% of Street stock pros, believes that despite CrowdStrike being 'undeniably an expensive stock,' there's a compelling case for renewed 30%+ free cash flow growth. The company is gaining momentum as a 'leading consolidator' in the cybersecurity space, with nearly half its customers now using six or more modules and a strong uptake of Falcon Flex contracts, which have grown sixfold year-over-year. Demand remains solid, with generative AI expanding both the threat landscape and the need for advanced security tools – areas where CrowdStrike's Charlotte AI is seeing 'strong traction.' Finally, margins are trending higher, with Q1 operating margins beating expectations and management now guiding to over 30% FCF margins by fiscal 2027. All told, Weiss sees enough upside to bump his price target from $455 to $490. Still, with shares already running hot, that implies just a modest 5% upside from current levels. Weiss' rating stays an Overweight (i.e., Buy). (To watch Weiss's track record, click here) Elsewhere on the Street, the stock garners an additional 28 Buys, 8 Holds and 1 Sell, for a Moderate Buy consensus rating. However, the $471.06 average target implies the stock is currently fully valued. (See CrowdStrike stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
3 hours ago
- Business Insider
Telus International 3.3M share Block Trade; price range $2.75-$2.85
Morgan Stanley is acting as sole book running manager for the offering. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
4 hours ago
- Yahoo
BYD Just Added Another Problem to Tesla's Long List
There is a heated price war in China's EV market. BYD just unleashed a new round of intense price cuts. Tesla has problems outside of China, too, such as Europe. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) investors have been on a bit of a roller coaster ride so far in 2025. The technology company's stock was up early in the year before falling as much as 45% in March and April, and then partially recovering so that it now trades down about 15% for the year. It still trades nearly 28% below all-time highs reached in December 2024. Along the way, there have been constant challenges, including a price war in China, severely declining sales in Europe, and brand backlash related to CEO Elon Musk's involvement in national and international politics. The coaster ride could potentially turn downhill again this month, thanks to China-based electric vehicle (EV) maker BYD's (OTC: BYDDY) recent move to slash prices. The action will apply more pressure to a now-challenging Chinese market that Tesla used to dominate. Let's dig into the details. China's EV market is in the midst of a highly contested battle for market share that includes a brutal price war brought on by multiple factors, including government subsidies, a long list of competing products, and a slowing global economy. These dynamics likely prompted BYD's big move late last month to make vehicle price cuts of as much as 34% on 22 electric and plug-in hybrid vehicle models (effective through the end of June). The announced cuts came after BYD reported its slowest year-over-year sales growth (up 21% in April) in more than four years. BYD's price cuts are likely to force its competitors to enlarge discounts to avoid giving up sales and market share. According to Bloomberg Intelligence, the average vehicle discount in China is around 15% so far this year, but analysts warn it could get even worse during the second half of the year. Even one of Tesla's biggest supporters, Morgan Stanley's Adam Jonas, expressed skepticism that Tesla could catch the competition in China. Jonas suggested Tesla's future is now even more tied to its upcoming launch of a robotaxi service on June 12. A report in the industry website InsideEVs quoted the Morgan Stanley analysis, which summed things up by saying, "We recommend investors have a look at the pictures and specs of the Xiaomi YU7, which looks like a Ferrari or Aston Martin SUV at the price of a Toyota Camry. Then ask yourself if Tesla would be better off introducing more steering-wheel-having EVs." BYD's price cuts add to Tesla's problems overseas. The eventuality of Chinese automakers setting sail for the U.S. market will increase EV competition significantly and exacerbate the issue. Tesla's challenges extend beyond the brutal price war in China. The company has been watching sales plunge in Europe, where the company also once dominated. Tesla's new car registrations in Europe plunged to 7,261 units in April, a decline of 49% over the previous April, according to the European Automobile Manufacturers Association. Through April, Tesla sold roughly 61,000 vehicles in Europe, a 39% decline compared to the same period last year. The automaker's results overseas are certainly weighing on its global sales, which were down 13% during the first quarter -- the worst quarterly decline in the company's history. Tesla has definitely faced adversity in 2025, but there is a little bit of good news for investors. In a recent post on X (formerly Twitter), Musk said he's back to spending 24/7 at work and sleeping in Tesla's conference, server, or factory rooms. Hopefully, with Musk returning his focus to the automotive business, the brand backlash related to his extracurricular activities will eventually blow over. For Tesla, that can't come soon enough. Despite the potential buying opportunity here while the stock is down -- and if you truly believe in Tesla long-term, it is an opportunity -- it might be wise to watch Tesla from the sidelines for the time being. If you're already a shareholder, there's no reason to sell. But know that, right now, the company seems to be facing an identity crisis: is it a robotaxi company, a car manufacturer, or a developer of AI and robotics? It might be wise to wait to invest in Tesla until its strategy forward is more certain. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $356,261!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,291!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $657,385!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 2, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. BYD Just Added Another Problem to Tesla's Long List was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
