Suzlon‘s share price was up 5% to hit an intraday high of ₹50 — a smidge away from its 52-week high of ₹50.60.

What Happened: Morgan Stanley initiated coverage on the stock with an “overweight” rating and a price target of ₹58.5. The target indicates a potential upside of 22% from the last closing price.

The brokerage highlighted that Suzlon 2.0 is well-positioned to benefit from India’s energy transition. The company has become much stronger following its deleveraging process and has significantly reduced its fixed operating costs, as per the global brokerage. As of the end of the March quarter, the wind energy major had a net cash balance of ₹1,100 crore.

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The analysts added that the market has not fully recognised Suzlon’s growth potential, anticipating wind orders worth 32 GW, or nearly $31 billion, over the next five years. The brokerage expects Suzlon’s earnings to grow at a compounded annual growth rate of 57% between FY2024 and FY2027.

Last week, Nuvama also initiated coverage on the stock with a “buy” rating and a price target of ₹53. Nuvama cited industry tailwinds, Suzlon’s technological edge, high margins in its Operations & Maintenance (O&M) services, and the company’s strengthened balance sheet as key factors supporting its growth visibility.

Price Action: Suzlon’s share price was locked in 5% upper circuit at ₹50 on Monday.

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