Investors who like multibagger green energy stock Suzlon may face a shock ahead. Global brokerage firm Morgan Stanley has changed the rating of Suzlon Energy. The rating of Suzlon shares has been reduced from overweight to equalweight. However, the target price of Suzlon shares has been increased.
Impact on the stock on Friday
Morgan Stanley has downgraded the rating of Suzlon Energy shares from overweight to equalweight. . After this, the shares of Wind Energy Solutions Company fell by 2 percent to Rs 80.5 on Friday. However, the stock later recovered and closed at Rs 81.20 with a fall of 0.78 per cent after the end of trading.
The target price was increased so much
To call a stock overweight This means that it will perform better than other stocks in its sector. At the same time, equal weight means that the return of the share remains the same as the rest of the shares of the related index or industry. However, despite the downgrade, Morgan Stanley has increased the target price for Suzlon to Rs 88. Earlier he had given a target of Rs 73 to this stock. This means that the stock can give a return of 8 percent from Friday’s closing price.
The stock has given such returns in the past.
Suzlon has been a multibagger for investors in the recent past. Has proven to be a return giving stock. Suzlon has given a return of 111 per cent in the last 6 months, while in a year this stock has given a strong return of more than 216 per cent to the investors… Excellent growth in order book, improvement in the company’s balance sheet and strong operations. Suzlon shares have performed well on the basis of cash flow.
Expectation of getting huge orders
Morgan Stanley believes that Suzlon will be a leader in India’s wind energy sector amid favorable competition. It remains an important beneficiary of India’s growth. Besides, it has the potential to increase its market share between 35 to 40 percent. Order-related activity in the renewable energy sector remains strong. Morgan Stanley expects to receive new orders of 32 GW from fiscal year 2025 to 2030.
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