Suzlon‘s share price was upbeat on Friday morning even though a global brokerage firm downgraded the stock’s rating.

What Happened: Morgan Stanley downgraded its rating on Suzlon Energy from “overweight” to “equal-weight”, but increased the target price by 20% from ₹73.00 to ₹88.00.

The brokerage said the downward revision was due to the recent surge in the company’s shares. Suzlon Energy’s shares have surged 110% in the past six months.

This robust performance is likely due to a considerable expansion in the company’s order book and an improved balance sheet, along with enhanced cash flow from operations, the brokerage noted.

Morgan Stanley now views the risk-reward balance in the wind energy major as more even. The investment firm believes that Suzlon’s current market valuation already reflects its recent achievements and advancements and warrants a more cautious stance.

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Earlier this month, securing India’s largest single wind energy order from NTPC and completed the acquisition of a 51% stake in Renom Energy Services. The company bagged an order for 1,166 megawatts, marking the largest single wind energy order in India. This pushed its cumulative order book close to 5 gigawatts.

On September 6, Suzlon Energy confirmed the successful acquisition of a 51% stake in Renom Energy Services. This acquisition made Renom Energy Services a subsidiary of Suzlon Energy.

Price Action: Suzlon’s share price was up 0.87% to trade at ₹82.52 in early trade 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.