Tata Power Shares Jump Despite Analyst Downgrades – EQ Mag Pro
Shares of Tata Power Co. jumped for the sixth straight session even as two brokerages downgraded the stock citing valuations.
Citi and CLSA reduced the rating on Tata Power to ‘sell’ on Monday.
Still, the shares of Tata Power continue to rally. The stock has risen 13.12% in the last six trading sessions compared with the BSE Sensex’s 1.59% gain. So far this year, the company’s scrip has advanced 220%, while the benchmark jumped 26.21%, according to Bloomberg data.
A possible trigger could be the likelihood of the stock being included in the MSCI Standard Index. An Edelweiss report suggests a formal announcement on the inclusion could come on Nov. 12.
The company’s chief executive last week told BloombergQuint that it plans to improve operating profit in the next few quarters through higher tariffs and sustained generation from its power plant at Mundra, among others.
The Bloomberg consensus 12-month price target is at Rs 189.57, implying potential downside of 22.5% from Tata Power’s Monday close.
Source : bloombergquint
