Tata Power‘s share price jumped on Friday morning, going up over 3% to hit an intraday high of ₹438.20.

What Happened: UBS has initiated coverage on the energy major with a “buy” rating on Tata Power, setting the target price at ₹510.

The brokerage firm cited the company’s robust EBITDA growth and its commitment to renewable energy as reasons for the bullish rating. The company’s value chain includes renewable power generation, solar equipment manufacturing, large-scale solar engineering, procurement and construction projects and pumped storage.

The brokerage said the renewables sector gives the company opportunities to expand on the back of increasing climate concerns and shortages. The analysts added that the company’s current valuation is reasonable given the size of the opportunities it had as well as its position at the forefront of the market.

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Earlier this month, Tata Power Renewable Energy (TPREL) and NHPC Renewable Energy Limited (NHPC-REL) entered a memorandum of understanding (MoU) to implement rooftop solar projects across government buildings in India, with a target of 100% solarisation by December 2025.

On Thursday, Tata Power partnered with the National Dairy Development Board (NDDB) to introduce renewable energy technologies within the dairy value chain, aiming to improve sustainability and operational efficiency within the milk value chain through the solarisation of dairy cooperative societies (DCSs), bulk milk coolers (BMCs) and milk chilling centers using solar microgrid technology.

Price Action: Tata Power’s share price was up 2.85% to trade at ₹435.40 as the markets opened on Friday.

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Photo- Arnav Pratap Singh for Shutterstock.

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