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Credit Suisse downgrades Just Dial on JD Omni concerns

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ANI New Delhi
Last Updated : Apr 26 2016 | 1:22 PM IST

Multinational financial services holding company Credit Suisse has downgraded Just Dial to neutral from outperform with a reduced target price of Rs. 950 from Rs. 1000.

According to Credit Suisse, maintaining the pace of paid listing growth, particularly outside the top-ten cities and competition from vertical players and others is a major challenge faced by Just Dial.

According to its report, the management's focus has in recent months shifted towards JD Omni from Search Plus, which represents a completely different business model for Just Dial and the capability to cope with it is yet to be tested.

According to Credit Suisse, rather than Search Plus driving a separate revenue stream, it would work as an add-on to Just Dial's local search offerings. It adds that absence of Search Plus ad-spends leads to FY16 earnings per share (EPS) upgrade.

The shares of Just Dial fell two percent and quoted Rs. 866.50, down Rs. 16.15 or 1.83 percent on the BSE.

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First Published: Apr 26 2016 | 1:07 PM IST

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