Waaree Energies, Premier Energy, Suzlon Energies, BHEL Rated New 'Buy' At UBS — Check Target Price
UBS suggests that there is room for creating value for stakeholders, and the advantage lies with existing market leaders.
UBS has initiated coverage on multiple industrial and infrastructure power Original Equipment Manufacturers with a buy rating. The brokerage believes that OEMs are expected to see significant growth given UBS sees profits will increase 3.7 times from FY20-25 to FY25-30 and established leaders will see a 45% Compound Annual Growth Rate in profits.
The report suggests that there is room for creating value for stakeholders, and the advantage lies with existing market leaders.
Waaree Energy On UBS
Initiate Buy with target price to Rs 4,400
Backward integration and scale provide edge
Capacity-led earnings acceleration underway
Highly rewarding transition from scale to integration
Robust 44% FY25-28E Ebitda CAGR, benefitting from multiple tailwinds
Long-term integrated capacity in focus
UBS On Premier Energy
Initiate Buy with target price to Rs 1,340
Operational robustness in a high-growth sector
Ahead of peers in integrated expansion
Operational robustness, execution and capital allocation an edge over peers
Robust earnings growth and cash flow; upside to consensus feasible
UBS On Suzlon
Initiate Buy with target price to Rs 78
Competitively set to ride a profitable upcycle
Sector tailwinds and competitive edge may lead earnings growth
Multiple growth levers; around 3 times growth in wind energy OEM profit pool
Order book/execution improving; HDD earnings, stronger balance sheet
UBS On BHEL
Initiate Buy with target price to Rs 340
Thermal reviving; remunerative growth ahead
Rising thermal orders; net profit to rise 8 times by FY28E
Thermal power still relevant amid renewable transition
Increasing capacity utilisation/healthy GM; upside risk to consensus estimates
Concerns on Thermal power overshadowing BHEL P&L potential
UBS On Thermax
Maintain Buy; Hike target price to Rs 5,100 from Rs 4,100
Slow and steady turnaround
Solid growth appetite with stronger competitive edge
Core products seeing traction; differentiation and growth to support margins
Set for a turnaround and strong growth
