New Delhi: Though Morgan Stanley has assigned an overweight rating on Reliance Industries, it says the company’s earnings could stagnate in the next three years. CNBC-TV18 gives the details.
Morgan Stanley is resuming coverage with an overweight rating on Reliance Industries. Its target price for the company is Rs 1,089. According to the brokerage house, the stock has 27 per cent upside potential from the current levels.
But Morgan Stanley sees stagnation in earnings of the company in the next three years. It estimates 13.2 per cent compound annual growth rate (CAGR) in the company's earnings over the next six years.
According to Morgan Stanley, Reliance Industries' existing business will cater to future capital spending needs. The company, according to the brokerage firm, will have a capex of $9 billion in the coming three years.
But the key triggers for the stock would be more news on the exploration and production (E&P) business, signing gas contracts with new customers and gas stations earnings getting higher than marketing margins.
Morgan Stanley has a bull case price of Rs 1,473 on Reliance Industries.
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