Tata Power‘s share price jumped up on Friday morning, hitting a fresh all-time high of ₹485.90.

What Happened: The surge today comes as Morgan Stanley upgraded the stock’s rating to “overweight” from “underweight”. The global brokerage firm also hiked the price target for Tata Power shares to ₹577, an around 75% increase from the earlier target of ₹331.00.

Analysts at Morgan Stanley pointed to a potent blend of Tata Power’s stable, regulated businesses and its market-linked ventures, such as the green platform, transmission and pumped hydro projects.

This diversified business model is expected to pave the way for earnings growth while ensuring a reasonable return on capital employed, excluding the Mundra project, and keeping leverage in check, the research firm said.

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Morgan Stanley recognised the quality of Tata Power’s projected growth, especially the contributions from its green platform as opposed to its historical performance.

Earlier this week, Motilal Oswal highlighted the power sector as a “colossal multi-decade investment opportunity”, with Tata Power being one of its top picks. The brokerage house initiated coverage on the Tata Group company with a "buy" rating and a price target of ₹530.

Earlier in the month, Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, secured a 400-megawatt hybrid project from the Maharashtra State Electricity Distribution Company Limited (MSEDCL). This marked TPREL's most significant renewable energy project in Maharashtra to date.

Price Action: Tata Power’s share price was up 0.41% to trade at ₹478 as the markets opened on Friday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.