REC, PFC Shares Rise To Nearly One-Month High After UBS Initiates 'Buy' Coverage
Both the companies have most of their loans in renewable infrastructure segment, the brokerage noted.
Shares of REC Ltd. and Power Finance Corp. rose to a nearly one-month high on Thursday after UBS Global Research initiated 'buy' coverage in the backdrop of India's growth in renewable energy generation and infrastructure. These two companies have most of their loans in the renewable infrastructure segment, the brokerage noted.
UBS Global Research started coverage on Power Finance Corp. with a target price of Rs 670 apiece, implying an upside of 25% from Wednesday's closing price. While on the REC, the brokerage set a target price of Rs 720 apiece, implying an upside of 17% from Wednesday's closing price.
REC & PFC Log Marginal Gains
Shares of REC rose as much as 2.82% to Rs 636.00, the highest level since Aug. 1. It was trading 1.02% higher at Rs 625.20 as of 10:32 a.m., compared to 0.24% advance in the NSE Nifty 50 index. The stock recorded a fourth consecutive sessions of gains.
The stock gained 156.87% in the last 12 months and 51.41% on year to date basis. Total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 60.36.
Out of eight analysts tracking the company, seven maintain a 'buy' rating, one recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.7%
Shares of PFC rose as much as 2.42% to Rs 552.30, the highest level since Aug. 1. It pared gains to trade 0.69% higher at Rs 543.15 as of 10:32 a.m., as compared to 0.24% advance in the NSE Nifty 50 index.
The stock gained 151.02% in last 12 months and 42.07% on year to date basis. Total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 61.03.
All the 11 analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.4%.
