Adani Port up on JP Morgan upgrade
REUTERS - Shares in Adani Ports and Special Economic Zone Ltd (APSE.NS), rose as much as 3.3 percent after brokerage JP Morgan upgraded the stock to overweight from neutral and raised its target price to 160 rupees from 145 rupees, citing expectations of robust earnings growth and strong performance at Mundra Port.
"We think Mundra Port is in a sweet spot over the next five years with spare capacities in high growth coal and container cargo segments," said JP Morgan in a note.
Consolidated annual compunded EPS is estimated at 35 pct over FY12-17 with average 26-27 pct return on equity, which merits a "valuation premium," said the investment bank.
The bank also says a scalable non-major port alternative to Mundra on the west coast is still elusive.
Adani Port has underperformed Nifty .NSEI in 2012, rising 10 percent versus 15.3 percent gains in the broader index.
Adani Port was last up 2 percent at 132.20 rupees.
(Reporting by Abhishek Vishnoi; Editing by Subhadip Sircar)
- Tweet this
- Share this
- Digg this
- IPhone emerges from "bygone era", reviewers hail bigger handset
- Alibaba in talks with Snapdeal to enter India - Economic Times
- After Obama speech, Islamic State wins new recruits in Syria - monitor
- Amazon expands Kindle lineup, boosts price of basic e-reader
- Fed renews zero rate pledge, but hints at steeper rate hike path
The United States said on Wednesday it will press Prime Minister Narendra Modi to end his blockage of a global trade pact when he visits Washington this month, something that could dampen the mood of a trip aimed at revitalizing strategic ties. Full Article
China cenbank injects $81 bln into major banks to support economy - reports Full Article