Motilal Oswal Financial Services downgraded ITC to Neutral from Buy and cut its target price to Rs 400, citing what it called an “unprecedented tax hike” that is likely to reset valuation multiples. The brokerage said the new rates would raise cigarette taxes by about 50%, assuming the National Calamity Contingent Duty continues, forcing ITC to take price hikes of at least 25% at a portfolio level merely to maintain current net realisations.