Shares of Larsen & Toubro (L&T) jumped around over 2% on Wednesday recovering from the 0.50% drop it saw on Monday.

What Happened: Global analysts firm Morgan Stanley on Wednesday maintained its ‘overweight’ rating on the L&T stock. The firm said that the capital expenditure cycle is gaining momentum as it raised the target price for the stock to ₹2,827 – an over 32% upside from the stock’s last closing price of ₹2140.60.

The construction giant recently bagged a ₹3100 crore defense contract from the government to manufacture three cadet training ships.

See Also: Morgan Stanley’s ‘Overweight’ Call Pulls NTPC Back To Green Today

Domestic brokerages have also had a favorable view of the stock. HDFC Securities and BOB Capital Markets have a ‘buy’ rating on the stock as both brokerage firms see an over 10% upside in the stock. ICICI Direct also has a ‘buy’ rating with a price target of ₹2,795 – a close to 30% upside from the stock’s last closing price.

Price Action: L&T shares were up 0.63% to trade at ₹2,154.05 in the early hours of trading on Monday.

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