Credit Suisse upgrades Adani Ports to ‘outperform’ from ‘neutral’, here’s why
Brokerage firm Credit Suisse has upgraded Adani Ports to ‘outperform’ from ‘neutral’, raising its target price to Rs 800 from the previous target of Rs 710, ahead of the company’s first quarter results on Tuesday.
CS has upgraded the stock based on its strong growth outlook (22 percent CAGR till FY25E) and its likely participation in the positive economic growth cyclicality, which was a positive surprise. The company has a strong FY25E guidance and reasonable valuations (12 times the forward estimations of EY/EBITDA for FY23, Credit Suisse said.
The company has guided for 500 metric tonnes of volume and Rs 187 billion of EBITDA in FY25 (FY21A of Rs 80 billion and CSe of FY25E EBITDA of Rs 175 billion), the brokerage said.
“Our FY22E numbers are ostensibly ahead of guidance as we account for Gangavaram and Sarguja rail acquisition for full FY22E,” it said.