Apollo Tyres - Cooper deal called off; upgrading to BUY - Kotak

As per news reports, Cooper Tires has called off the merger agreement with Apollo Tyres. Cooper has, however, filed a suit against Apollo for damages; hearing will begin in January. We are upgrading the stock to BUY (REDUCE earlier) with a revised target price of Rs. 125 (Rs. 64 earlier). We are not accounting for any break-up fee as of now. In our view, the company has lost a bit of investor confidence, which will take time to regain. Hence, the stock might quote at a discount (we are factoring 15% discount) to earlier multiples.

Source : Equity Bulls

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