JSW Steel shares jump 4% as Macquarie upgrades stock to overweight, hikes target price to Rs 1,077
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JSW Steel shares surged 4% to its day’s high of Rs 984.40 on BSE after the global brokerage firm Macquarie upgraded its rating to overweight and with a target price of Rs 1,077, citing a positive outlook for India's metals sector. In addition to upgrading JSW Steel’s rating to outperform, Macquarie has also raised the target price of the stock from an earlier Rs 884, reflecting an upside potential of over 13% from its closing price on Thursday. Macquarie stated that it is positive on the resilient domestic fundamentals and moderating input costs of the metal sectors as the commodities’ price outlook factors in the upside risks over the next 6-12 months. “Steel companies look set to benefit from domestic price premium to import parity, steady leverage and easing input costs,” said the global brokerage firm in its note. The foreign brokerage firm also believes that the steel stock multiples should be seen in the context of improved ROE ...