Jefferies downgrades Tata Power to 'hold', target price Rs 55
The stock ended down 4.6% at Rs 49.30 on Wednesday.
Last Updated: Feb 27, 2020, 11.24 AM IST
Jefferies has downgraded Tata Power to hold from buy and lowered target price to Rs 55 from Rs 90. Between a renewable energy acquisition and incremental capex, monetisation leading to a material debt decline seems elusive, said Jefferies. Tata Power’s ROEs will remain subdued at sub 10% unless some resolution comes on Mundra or all monetisation proceeds go towards debt reduction with a cap on incremental capex, said Jefferies. The stock ended down 4.6% at Rs 49.30 on Wednesday.
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