BHEL zooms 14% on reports CLSA upgrades to ‘Buy’ on divestment plan
State-owned Bharat Heavy Electricals Ltd (BHEL) zoomed 14 per cent to Rs 61.30 apiece on the BSE on Wednesday after global brokerage firm CLSA upgraded the stock to ‘Buy’ from ‘Sell’ owing to the benefits that the company could reap due to government’s stake sale.
According to reports, the brokerage sees “limited risk” in the stock and believes the “company has a lot to gain from a strategic partner”. If the divestiture fails, there could be risks to market price, it said. While the brokerage believes the “strategic sale could unclock value” for the company, it has cut its FY20 EPS estimates on the back of weak H1FY20. The firm has set a target price of Rs 67, up from a previous target of Rs 54.
