India's ITC rises after Citi double-upgrades to 'buy'

By Reuters News

** Consumer firm ITC ITC.NS rise as much as 3.24%, biggest intraday rise in five weeks, to 264.2 rupees apiece

** Rise after Citi double upgrades ITC to "buy" from "sell" and raises price target to 300 rupees from 270 rupees, implying a 16.7% upside

** While near-term earnings are likely to remain under pressure following the sharp hike in cigarette tax, the 34% correction year-to-date prices in associated volume, profitability, says Citi

** Adds cigarette profitability to improve sequentially through the financial year 2027 as pricing action flows through

** Says earnings downgrade cycle is largely over, improving the risk-reward at current valuations

** Average rating of 34 analysts tracking ITC is "buy"; median price target is 322.5 rupees apiece, according to data compiled by LSEG

** ITC shares are down 35% in 2026 so far, lagging the 14.2% drop in the Nifty 50 index .NSEI

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