Multibagger power PSU stocks: Brokerage gives 'BUY' rating - Check targets

REC Share Price Target, PFC Share Price Target: Amid a strong rally in the stock market, the PSU stocks are witnessing a good gain. In Wednesday's trading session, shares of power financing companies REC and PFC jumped up to 5 per cent. The surge comes as global brokerage firm Bernstein has initiated the coverage. According to the brokerage, these two stocks are the top choices for the ongoing power cycle.

Investors are underestimating the duration and intensity of this power cycle, said Bernstein in its note while stating that the NPA risk is much lower this cycle.

According to the brokerage, both stocks will benefit from growth in the power sector. The increase in power prices has a good correlation with the stock price. Better ROE and growth are expected from power companies. Shares from power companies are available at cheaper valuations.

REC Share Price Target By Brokerage

Bernstein has given an 'outperform' rating to REC's stock. The target per share is Rs 653. The stock closed at Rs 539 on July 2. From here the stock can jump by about 21 per cent. This stock has given a strong return of 235 per cent to investors in the last one year. The stock has shown a growth of about 30 per cent in 6 months.

PFC Share Price Target By Brokerage

Bernstein has given an 'outperform' rating to the stock of PFC. The target per share is Rs 620. The stock closed at Rs 503 on July 2. Thus, the stock can give a strong return of up to 23 per cent from the current price. The stock of PFC has given a multibagger return to investors. The stock has jumped 200 per cent in the last one year. The stock has jumped 35 per cent in 6 months.