Goldman Sachs Upgrades Westlife Foodworld Ltd to Buy, Sets Price Target at INR1,075
In a recent upgrade, Goldman Sachs has raised its rating on Westlife Foodworld Ltd (WLDL:IN) from Neutral to Buy, setting a new price target of INR1,075, up from the previous target of INR820. The investment firm foresees a strong recovery for the company in the second half of fiscal year 2025, along with a promising long-term growth outlook that outshines its competitors. This upgrade is driven by the potential impact of a new product launch and improved value offerings that are expected to fuel growth in same-store sales starting in the latter half of FY25.
Key highlights from the analyst at Goldman Sachs include Westlife Foodworld's strategic positioning for recovery in the latter half of FY25, driven by successful new product introductions and diversification in its restaurant offerings. The company's ability to cater to various day-parts within the quick-service restaurant sector sets it on a path for sustained growth.
Goldman Sachs has also revised its EBITDA estimates for FY26 and FY27, projecting a sales CAGR of 13% and an EBITDA CAGR of 22% from FY24 through FY27. The firm has adjusted the target enterprise value to EBITDA (EV/EBITDA) multiple to 38 times, reflecting a 25% discount to the firm's India consumer discretionary coverage average. This valuation places Westlife Foodworld at a competitive position compared to its peers in the industry.
As the operational performance of Westlife Foodworld improves, Goldman Sachs anticipates that its valuation will align more closely with the broader sector. With the revised price target and Buy rating, the firm estimates a potential upside of approximately 20% for the stock.
In conclusion, this upgrade from Goldman Sachs signals a bullish outlook for Westlife Foodworld, highlighting its growth potential and recovery prospects in the coming years. Investors may consider this as an opportunity to capitalize on the expected uptrend in the company's performance and stock price.
This content is essential for investors looking to make informed decisions about their investment portfolios and understand the potential growth opportunities in the quick-service restaurant sector. By analyzing the insights provided by Goldman Sachs, investors can better position themselves to benefit from the anticipated growth trajectory of Westlife Foodworld Ltd.
