Deutsche Bank starts coverage of United Spirits shares with 'buy' rating

Reuters Posted: Jan 23, 2013 at 1050 hrs
Mumbai Deutsche Bank initiated coverage of United Spirits shares with a 'buy' rating, citing it 53 percent market share in the Indian spirits market, the significant entry barriers to foreign players, and the benefits from its deal to sell a majority stake to Diageo.

The investment bank said Diageo Plc would bring "much-needed financial prudence" to United Spirits Ltd , which should improve profitability and cash flows.

Deutsche set its 12-month price target at 2,700 rupees.

United Spirits shares were up 2 percent at 1,797.00 rupees as of 0407 GMT.

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