- Morgan Stanley upgraded Multi Commodity Exchange stock to Overweight from Equal-weight
- The new 12-month price target for MCX is Rs 3,270, up from Rs 2,550 earlier
- MCX benefits from increased commodity price volatility due to the Iran war
Multinational brokerage Morgan Stanley has upgraded the rating on Multi Commodity Exchange of India Ltd. stock to 'Overweight' from 'Equal-weight' and revised the 12-month share price target higher. The new target price of Rs 3,270, compared to Rs 2,550 earlier, implies an upside potential of 22% over the previous close.
It is also the highest among analysts tracked by Bloomberg. Eleven out of 13 analysts tracking MCX have a 'Buy' rating on the stock, and two recommend 'hold'. The average of 12-month price targets is Rs 2,922 and indicates a potential upside of 7%.
Morgan Stanley said MCX's business model benefits from elevated commodity price volatility since the outbreak of the Iran war. Noting that exchange volumes typically rise with heightened volatility in commodity prices, the bourse is well-positioned as a defensive play amid broader decline in Indian equities. Analysts expect strong revenue growth in the current risk-off environment.
MCX Share Price Movement
Shares of MCX hit record high on Monday. The stock gained as much as 3.5% to hit the peak of Rs 2,764 on the NSE. The scrip is up 151% in the last 12 months and 24% year-to-date.
The total traded volume so far in the day stood at 0.7 times its 30-day average and the turnover was Rs 746 crore. The relative strength index was at 77, indicating the stock is overbought.
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