Trent stock rating: Brokerages divided on outlook after Q1 revenue growth misses estimates; check target prices

Shares of Trent are likely to be in focus on Tuesday after the Tata Group retailer reported fiscal first-quarter standalone revenue growth that came in slightly below some brokerage estimates, prompting mixed views on the stock. While Bernstein retained its bullish stance, Morgan Stanley flagged limited near-term upside following the recent rally, and Citi remained cautious over slowing productivity and rising competitive pressures.

Trent reported a 19 percent year-on-year increase in standalone revenue to Rs 5,666 crore for the quarter ended June 30, compared with Rs 4,781 crore a year earlier. The company added one Westside store and 19 Zudio outlets during the quarter, taking its total store count to 1,312 as of June 30.

Bernstein maintained its 'Outperform' rating on the stock with a target price of Rs 3,500, implying a potential upside of about 4.7 percent from Monday's closing price. The brokerage said standalone revenue growth of 19 percent was marginally below expectations. Westside store additions remained slow and Zudio continued to expand at a healthy pace. It added that store additions were lower than expected but did not see any concern over Trent's full-year FY27 expansion target, adding that the June quarter is typically the weakest period for store additions.

• Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

Morgan Stanley retained its 'Overweight' rating but with a target price of Rs 3,151, below the stock's latest closing price. The brokerage said first-quarter revenue growth was slightly below estimates, and highlighted the addition of one Westside and 19 Zudio stores during the quarter. It expects EBITDA margin expansion of around 100 basis points year-on-year. However, Morgan Stanley said that the stock's recent rally could limit near-term upside after the softer-than-expected business update.

Citi reiterated its 'Sell' rating with a target price of Rs 2,733. The brokerage said that standalone revenue growth missed expectations and that revenue per square foot declined 12.2 percent year-on-year. While Citi described Zudio's seasonal store additions as healthy, it remained cautious because of weakening store productivity, intensifying competition and potential cannibalisation risks.

Despite the softer-than-expected quarterly update, Trent continues to be viewed by several brokerages as one of the stronger players in the organised apparel retail space, supported by the continued expansion of its Westside and Zudio formats. Earlier, HSBC had projected around 21 percent revenue growth for the quarter, while Bernstein had highlighted faster Westside expansion as a potential additional growth driver alongside Zudio.

Trent shares ended Monday marginally lower at Rs 3,343.8, valuing the company at about Rs 1.78 lakh crore. The stock has gained 16.6 percent so far in 2026, outperforming the Nifty 50, which is down 6.6 percent over the same period.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.