Why Analysts See This Adani Stock Going Up 24%

Adani Enterprises shares extended gains for the second straight session as a global research firm maintained its positive outlook on the stock.

What Happened: Jefferies maintained its “buy” rating for the stock with a price target of ₹3,800. The target implies an around 24% upside from the stock’s last closing price of ₹3,066.50.

Analysts highlighted that the company has set ambitious targets to install up to a 3-million-tonne capacity for green hydrogen production over the next decade. Jefferies emphasized that this targeted green hydrogen ecosystem would play a pivotal role in managing both the price and cost aspects of the business effectively.

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Over the next two to three years, the company aims to complete the manufacturing setup, incorporating integrated facilities for solar modules, wind turbines, and electrolyzers. Additionally, the company plans to initiate testing of green hydrogen during this period, the analysts added.

In its management meeting note, the research firm added that the company aims to participate in bidding for new airports as part of the government’s airport privatization plan, a move anticipated to occur after the elections in the upcoming financial year.

Additionally, Adani Enterprises is actively implementing substantial artificial intelligence initiatives across its airports. This strategic endeavour is expected to bolster growth in the non-aeronautical business segment while simultaneously enhancing customer experience and operational efficiency, the analysts added.

The analysts also mentioned that the company has denied reports suggesting that the US was investigating the Gautam Adani-led empire.

Price Action: Adani Ent’s share price was up 0.53% to trade at ₹3,082.90 on Friday afternoon.

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