GAIL shares jump over 4% to fresh 52-week high on UBS’ upgrade
GAIL (India) shares shot up over 4% to their 52-week high of Rs 122.75 on the NSE in Monday’s trade after Zurich-headquartered UBS double upgraded the stock to ‘Buy’ from ‘Sell’, calling it a candidate fit for re-rating. The stock has a potential upside of 28% and is currently available at a deep discount, it said.
UBS has put a price target of Rs 150 on GAIL arguing that the utility nature of the business could lead to re-rating in the stock. India’s higher gas demand and GAIL’s coming pipelines to drive 8% volume CAGR. The brokerage also sees the business turning from cyclical to structural in nature. The zonal revenue recognition holds upside to tariffs with the scope of further revisions, UBS said in a note.
