Brokerages bullish on Affle India, Barbeque Nation; give buy ratings

Goldman Sachs and IDBI Capital initiated coverage on Affle India and Barbeque-Nation Hospitality, respectively, with buy ratings. Here’s why the brokerages are bullish on these stocks.

Affle (India)
Brokerage: Goldman Sachs

Price Target: Rs 1,495 CMP: Rs 1,327.25

Upside (%): 12.6

Goldman initiated coverage on Affle, a digital advertising player, with a buy rating. The brokerage expects the company’s revenues to grow 32% on a compounded basis between FY22 and FY25. “Affle operates in a global large TAM ($65 billion in 2021) and which is expected by eMarketer to grow at 30% over 2021-25 driven by secular drivers of rising internet/smartphone/ ecommerce penetration, more data traffic across EMs and more time spent by digital consumers on mobile,” said Goldman.

Barbeque-Nation Hospitality



Price Target: Rs 1,457

CMP: Rs 1,106

Upside (%): 31.7

IDBI Capital initiated coverage on the restaurant chain with a ‘high conviction buy’. The brokerage said BarbequeNation is a breakout investment opportunity in India’s fastest growing chained-casual-diningrestaurant (CDR) sector. “Driven by superior storeeconomics, Barbeque has been able to outperform competition in CDR sector,” said IDBI Capital. “Online delivery business is tracking well (13% revenue share) and is likely to grow at 20% CAGR during FY23-24E (estimates)

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