NSEBrokerage firm Morgan Stanley has initiated coverage on Wind Turbine Generator producer Suzlon Energy Ltd., with an "overweight" rating and a price target of ₹58.5.
Morgan Stanley's price target implies a potential upside of 22% from Friday's closing levels.Shares of Suzlon have risen 24% so far in 2024, but have gained over 300% in the last 12 months.Morgan Stanley wrote in its note that Suzlon 2.0 is well positioned to benefit from India's energy transition.
Earlier, Nuvama had initiated coverage on the stock with a "buy" recommendation and a price target of ₹53.
Suzlon also saw an increase in weightage on the MSCI indices, which resulted in inflows worth $14 million on Friday.Shares of Suzlon on Friday ended in an upper circuit of ₹47.65.
They are currently also locked in a 5% upper circuit at ₹50.
NSE
Brokerage firm Morgan Stanley has initiated coverage on Wind Turbine Generator producer Suzlon Energy Ltd., with an "overweight" rating and a price target of ₹58.5. Morgan Stanley's price target implies a potential upside of 22% from Friday's closing levels.Shares of Suzlon have risen 24% so far in 2024, but have gained over 300% in the last 12 months.Morgan Stanley wrote in its note that Suzlon 2.0 is well positioned to benefit from India's energy transition. It is a much stronger company after the deleveraging process and much leaner after cutting down on fixed operating costs.Suzlon turned into a debt free company after raising funds through various methods including a QIP and a rights issue. At the end of the March quarter, the company had a net cash balance of ₹1,100 crore on its books.The brokerage wrote that the market has not fully appreciated Suzlon's growth potential yet, as it expects wind orders worth 32 GW or nearly $31 billion in the next five years.Suzlon's earnings are likely to grow at a compounded annual growth rate (CAGR) of 57% over the next three years between financial year 2024 to 2027, according to the Morgan Stanley note.This is the second initiation on Suzlon Energy in the last week. Earlier, Nuvama had initiated coverage on the stock with a "buy" recommendation and a price target of ₹53. Nuvama believes that Suzlon's growth visibility is backed by industry tailwinds, technological edge, high margins in the Operations & Maintenance (O&M) services and balance sheet strength as well.Suzlon's management, in an interaction with CNBC-TV18 had highlighted that it has been in negotiations with clients for a large order book. In the last two weeks, the company has won three orders. It won its first order from Juniper Green Energy, the second from the Aditya Birla Group and the third being from Oyster Green Hybrid on Friday. Suzlon also saw an increase in weightage on the MSCI indices, which resulted in inflows worth $14 million on Friday.Shares of Suzlon on Friday ended in an upper circuit of ₹47.65. They are currently also locked in a 5% upper circuit at ₹50.
