Morgan Stanley has retained its price target on Suzlon at ₹71, which implies a potential upside of 20% from Monday’s closing levels.
The brokerage wrote in its note that the steep correction seen in shares of Suzlon is an opportunity for shareholders to accumulate the stock. As of the November 13 low, shares of Suzlon had corrected 38% from their recent peak of ₹86.04. The 9% drop seen in the stock price on Wednesday led to Suzlon’s price band being revised back to 5% from 10% earlier.
Morgan Stanley believes that Suzlon has a strong business moat and that, coupled with the growth opportunity for wind Original Equipment Manufacturers (OEMs) are strong factors behind its bullish stance.
The brokerage has lowered its financial year 2025 sales volume for Suzlon to 1.3 GW from 1.5 GW earlier. However, for financial year 2025-2027, the total sales volume remains unchanged at 7.15 GW for Suzlon.
Out of the five analysts that have coverage on Suzlon, three of them now have a “buy” rating on the stock, while the other two have a “hold” recommendation. Anand Rathi has the highest price target for Suzlon’s shares at ₹82.
Shares of Suzlon Energy gained for the second day in a row on Monday to end at ₹59.26. Despite the correction from its recent highs, the stock is still up 53% so far in 2024.
First Published: Nov 19, 2024 7:31 AM IST
