Coal India Rises After Morgan Stanley Upgrades to 'Overweight' on Earnings Outlook
Coal India shares gained 1.3% to 420.10 rupees as Morgan Stanley upgraded the stock to "overweight" from "equal-weight", hiking its price target to 480 rupees. The brokerage cited accelerating thermal power demand and depleted power plant inventories as drivers for volume growth, expecting e-auction premiums to expand with rising global thermal coal prices and firm industrial demand. Morgan Stanley forecasts a roughly 20% upgrade to FY27 EPS estimates, anticipating an earnings upgrade cycle to support the stock in the coming months.
4% after Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and raised its target price to 480 rupees from 420 rupees. The brokerage cited earnings upgrades ahead, saying accelerating thermal power demand and sharply depleted power plant inventories should support Coal India's volume growth. It said e-auction premiums are expected to expand as global thermal coal prices rise and industrial demand remains firm. Morgan Stanley said revised volume and e-auction assumptions drive a ~20% upgrade to its FY27 EPS estimate, and that an earnings upgrade cycle is likely to support stock performance in the coming months.
compiled data showed the stock has an average rating from 24 analysts of "buy" and a median target price of 469 rupees. 3% drop in the Nifty 50.