Brokerage firm HSBC initiated coverage on Varun Beverages, assigning the stock a 'buy' tag with a price target of Rs 780 as it sees scope for an over 28 percent upside potential in the scrip. The brokerage's bullish outlook hinges on its expectations that Varun Beverages has the potential to become the largest and most disruptive PepsiCo bottler in the company's history.