Morgan Stanley resumes United Spirits at 'overweight'

Morgan Stanley resumes coverage of United Spirits Ltd with an "overweight" rating and a target price of Rs 3,115.

The investment bank says new owner Diageo Plc  could implement a greater focus on profitable growth for the liquor maker.

Morgan Stanley says United Spirits could also focus on the "prestige" liquor segment, improving margins.

The bank also expects capital efficiencies, reduced leverage, strengthened leadership, and consistent disclosures to boost United Spirits' shares.

As of 11.29 a.m., United Spirits shares were up 4.45 per cent at Rs 2,507.

Copyright: Thomson Reuters 2013