Shares of Apollo Tyres touched a new 52-week high on BSE today after Credit Suisse said it was initiating coverage of the stock with an "Outperform" rating.
Shares of Apollo tyres closed higher at Rs82 up Rs8 or 11%. The stock touched an intra day high of Rs83 and low of Rs74, after opening at Rs75.
Total traded quantity stood at 87.10 lakhs shares over the counter.
The Swiss brokerage firm has set a target price of Rs108 on Apollo Tyres, implying potential upside of 50% from current levels.
Credit Suisse believes that the Indian tyre industry is in midst of a very favourable supply-demand scenario and expects capacity utilisation levels to remain close to 100% for the next three years.
On Apollo Tyres, it says that it is well positioned to capture these trends and grow its
consolidated earnings 31% p.a. in FY11-13E.
"We also like its ambitious international strategy, supported by its two value-accretive acquisitions," Credit Suisse said in its note.