Jefferies Boosts Target Prices for Three Adani Group Stocks: Power, Ports, and Enterprises on the Rise!
The recent report by Jefferies indicates a bullish outlook on Adani stocks, namely Adani Power, Adani Ports, and Adani Enterprises, due to their strong operational performance and strategic capacity expansions. Jefferies has raised target prices for these stocks while maintaining ‘Buy’ ratings, underscoring optimism about volume growth and improving EBITDA margins. The brokerage’s analysis highlights significant factors such as rising demand in the ports and power sectors, as well as an advantageous trajectory for diversified infrastructure projects, all contributing to an overall positive investment narrative.
In particular, the target price for Adani Ports has been adjusted to Rs 1,980, reflecting an estimated 17x Mar-28E EV/EBITDA multiple. The previous quarter’s performance surpassed expectations with a 9% YoY increase in domestic port realizations and a 9% EBITDA growth outlook for FY27E. Key initiatives, including the upcoming NQXT and Colombo West terminals, are poised to drive future growth, alongside anticipations of a recovery in coal imports. The expected EBITDA CAGR of 18% over FY26-31E positions Adani Ports well within the rapidly expanding logistics and transportation market.
For Adani Power, Jefferies has elevated the target price to Rs 255, predicated on robust capacity growth projections leading to a 23% EBITDA CAGR through FY26-29E. The company’s recent quarter results beat projections, driven by improved utilization and competitive power rates bolstered by new Power Purchase Agreements. Meanwhile, Adani Enterprises has also seen a target price increase to Rs 2,800, with substantial contributions from Airports and ANIL sectors leading the charge. With plans for significant incremental EBITDA from scaling operations in Navi Mumbai Airport and Kutch Copper, Adani Enterprises demonstrates a solid foundation for continued growth, supported by a considerable capex investment strategy.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)