Shares of Ather Energy Ltd. rose over 3% on Wednesday after the company received a 'buy' rating from HSBC and Nomura, as the brokerages initiated coverage on the stock. HSBC has initiated coverage with a target price of Rs 450, and Nomura initiated with a target price of Rs 458.
HSBC highlighted Ather Energy as a good company in a tough industry. "Ather's product quality, technology leadership, and distribution expansion should drive its market share in a tough market," it added.
Nomura shared that the company is riding on electrification and premiumisation. The brokerage estimates Ather's gross margin will rise from 16.6% in Q4FY25 to 28% by FY28F, which is in line with that of ICE 2W companies.
Earlier on July 29, the Department for Promotion of Industry and Internal Trade and Ather Energy signed an MoU to provide new opportunities for startups in the EV and manufacturing spaces. The MoU will focus on providing strategic mentorship for deep-tech startups and infrastructure support for startups in the EV value chain.
Ather Energy Share Price
Shares of Ather Energy rose as much as 3.92% to Rs 358.25 apiece. They pared gains to trade 1.23% higher at Rs 349 apiece, as of 9:30 a.m. This compares to a 0.12% advance in the NSE Nifty 50.
The stock has risen 14.87% since listing on May 6. Total traded volume so far in the day stood at 0.85 times its 30-day average. The relative strength index was at 55.30.
Four analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 26.5%.
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