UPL’s Shares Jump To A Record High As Analysts Up Price Targets After Q4
UPL’s stock jumped more than 10%—the most since Feb. 24—to trade at a record high of Rs 758 apiece around 1 p.m. on Friday. The stock, however, pared some of its gains to end 7.41% higher. Of the 35 analysts tracking the company, 32 have a ‘buy’ rating, two suggest a ‘hold’ and one recommends selling the stock, according to Bloomberg data. The average of the 12-month consensus price targets implies an upside of 9.3%.
Here’s what analysts made of UPL’s Q4 performance…
Morgan Stanley
- Rates ‘overweight’, raises target price to Rs 832 from Rs 426 apiece.
- “We see a strong macro backdrop for crop protection — rise in acreages and agri commodity prices.”
- UPL’s positioning on differentiated and sustainable products should drive share gains and stronger earnings growth.
- UPL has an innovative pipeline of differentiated products and will also benefit from its recent strategic tie-ups. For the sustainable products portfolio, the strategy revolves around accelerated adoption of biostimulants, creating new biologicals, and expanding on ProNutiva offerings.
Jefferies Maintains
- ‘buy’ rating, raises target price to Rs 800 from Rs 655 apiece.
- Globally, a rise in crop prices is likely to boost farmer income, auguring well for UPL (potential price hikes).
- Factoring Q4 beat, strong crop prices, deleveraging, positive management commentary and guidance, the research firm raises FY22-24 earnings by 17-20%.
- Key risks include global disruption, delay in Arysta synergies, pricing pressures.
CLSA
- Maintains ‘buy’ rating’, hikes price target to Rs 900 apiece from Rs 740.
- India was the standout region with 23% year-on-year growth, helped by favourable weather and new launches.
- Strong agronomic conditions leads to 4-5% upgrade in EPS estimates.
Source: https://www.bloombergquint.com/business/upls-shares-jump-to-a-record-high-as-analysts-up-price-targets-after-q4
