UBS - United Spirits

UBS Investment Research is bullish on United Spirits and has recommended buy rating on the stock with a 12-month target of Rs 1670.

EBITDA growth now improves from 29% over FY07 to 33% growth over FY07. Our EPS estimates have increased from Rs37.5 to Rs38.9 (+4%) for FY08E and from Rs45.1 to Rs46.8 (+4%) for FY09E

The sum-of-the-parts of the DCF of the core business and the value ascribed to W&M on the target EV/EBITDA-based valuation. The new price target is Rs 1670.