CG Power shares climb over 4% after UBS hikes target price, predicts 34% upside
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Shares of CG Power climbed over 4% to Rs 660 during Thursday's intraday trading on BSE after the global brokerage firm UBS maintained its buy rating and raised the stock's target price to Rs 850 from Rs 580. This adjustment suggests an upside potential of 34% from the previous day's closing price of Rs 631.8 apiece. The brokerage firm suggests that the company is a prudent capital allocator and timely fund allocation will drive the bottomline in the coming quarters. Furthermore, medium-term demand drivers are in place on the back of robust capital allocation. "The company possesses best-in-class profitability and significant option value," UBS said in a note. UBS also highlighted a lack of consensus on the potential for faster revenue ramp-up and better margins. They emphasised key value drivers over the next 12-24 months and urged a closer examination of critical variables. Also Read: Looking for stocks to buy befor...