Nomura downgrades Titan to 'neutral'

Reuters Market Eye - Nomura downgrades jewellery maker Titan Industries Ltd to "neutral" from "buy" and cuts its target price to 250 rupees from 321 rupees.

The investment bank says concerns over falling gold prices and the uncertain demand environment will likely mean earnings growth could be much more tepid than what consensus is building in for Titan.

Nomura adds it is 10 percent below consensus on Titan 's FY14 earnings estimate and believes that over the next couple of months there will be a meaningful correction to consensus earnings estimates.

At 12:06 p.m. Titan's shares were up 5.3 percent on short covering, dealers say.

 

(Reporting by Abhishek Vishnoi)