Shares of power lenders Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) gained on Thursday after HSBC upgrades their stocks to “buy” from “hold”.
At 11.40 am, REC and PFC shares were trading 1.76 per cent and 2.53 per cent up at Rs 155.95 and Rs 154.20, respectively. Sensex was up 12.71 points at 23,101.64.
HSBC, however, cuts price target of Rural Electrification Corporation shares to Rs 200 from Rs 320 earlier. Price target of PFC shares also reduced to Rs 180 rupees from Rs 267, earlier.
The banking and financial services institutions cuts price target on account of lower loan growth assumptions, lower margins and higher credit costs.
Of 21 analysts covering REC, 11 rate “buy” or “strong buy”, 5 “hold” while 5 “sell” or “strong sell”, median price target is Rs 265, according to Thomson Reuters data.
For PFC, of the 22 analysts, 11 rate “buy” or “strong buy”, 6 “hold” and 5 “sell” or below rating, median price target for PFC shares are Rs 245.
(With inputs from Reuters)