Shares of Tata Group’s retail arm, Trent Ltd., will be in focus on Tuesday after global brokerage Bernstein revised its price target downwards while maintaining an optimistic long-term view.

Revised Target and Rating:
Bernstein cut its price target on Trent to ₹5,000, which still implies a potential upside of approximately 19% from Monday’s closing price. The brokerage has maintained its ‘Outperform’ rating.

Rationale for Recovery:
The brokerage believes Trent’s revenue growth has bottomed out and highlighted several drivers for a rebound:

• Positive Like-for-Like Growth: Expected in split stores due to a favorable base.
• Zudio Expansion: Strong network growth with a projected 20% CAGR over the next three years.
• Improved Demand: A better consumer demand environment.
• Steady Momentum: Continued strength in the Westside brand.

Key Risk and Growth Outlook:
Bernstein flagged rising competition—particularly from new store additions and attempts to replicate Zudio’s value-fashion model—as the primary risk.

The brokerage expects revenue to grow 19% in FY26 and projects a 20% CAGR for the FY26–FY28 period.

Analyst Sentiment and Stock Performance:
Of the 28 analysts covering the stock:

• 17 have a ‘Buy’ rating.
• 5 recommend ‘Hold’.
• 6 have a ‘Sell’ recommendation.

Trent’s shares ended Monday 0.76% lower at ₹4,218. The stock has declined nearly 11% in the past month and is down 40% year-to-date in 2025.