Mixed Ratings on Avenue Supermart: Macquarie Recommends Buy, Morgan Stanley Bullish, Goldman Sachs Advises Sell

Macquarie on Avenue Supermart:

Maintains an “Outperform” rating with a target price of ₹5,600.

Sales growth has slowed compared to Q1.

Store additions have been slightly below expectations.

Gross margins are expected to decline due to a shift in product mix.

Morgan Stanley on Avenue Supermart:

Maintains an “Overweight” rating with a target price of ₹5,769.

Growth has been slower than expected.

Awaiting management’s explanation on the slower growth.

Standalone revenue is 5% below estimates.

Operational improvements are happening but at a slower pace.

Goldman Sachs on Avenue Supermart:

Maintains a “Sell” rating with a target price of ₹4,050.

A sharp growth slowdown is likely, impacted by quick-commerce trends.

The slowdown is due to weaker same-store sales growth (SSSG).

EPS estimates for FY26/27 are reduced by 2%.

The pace of new store openings is at risk.