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Suzlon Energy has been rated as a ‘good to have’ stock by Nuvama, maintaining a ‘BUY’ thesis with a target price of ₹53, supported by the wind sector upturn and financial turnaround. Brokerage house Nuvama believes that Suzlon Energy is a ‘good to have’ investment, rather than a ‘need to have’ one. The brokerage sees no reason to deviate from its ‘BUY’ thesis, keeping the target price at ₹53.
This recommendation is backed by the structural improvement in the wind sector and the company’s positive financial transformation. The stock of Suzlon Energy experienced a notable boost in Tuesday’s trading session, following a significant order win.
Suzlon Energy Ltd shares saw a rise of up to 4 percent in intra-day trading, reaching ₹49.29 today. The stock is currently just 5.5 percent away from its 52-week high of ₹52.19, achieved on June 4, 2024. Moreover, it has surged a substantial 271 percent from its 52-week low of ₹13.28, recorded on June 23, 2023.
In related news, Marc Desaedeleer, an Independent Director at Suzlon, recently resigned, citing concerns regarding the company’s corporate governance practices not meeting his expectations. However, the management clarified that the issues raised were process-oriented and not related to financial or operational irregularities.
Amidst these developments, brokerage ICICI Securities reiterated its ‘BUY’ rating on Suzlon, projecting a target price of ₹60, indicating a potential 27 percent upside. The firm highlighted the company’s focus on debt reduction, efficient working capital management, and commitment to enhancing corporate governance.
Additionally, Morgan Stanley initiated coverage on Suzlon with an ‘Overweight’ rating, recognizing the company as a significant beneficiary of India’s transition towards greener energy sources. The firm forecasted that Suzlon could secure wind orders totaling around 32 GW or $31 billion over the next five years, with a projected 57 percent Compound Annual Growth Rate from FY24 to FY27.
Overall, Suzlon Energy continues to showcase strong potential in the wind energy sector, with positive outlooks from prominent brokerages and analysts, emphasizing the company’s financial turnaround and market leadership.
