Ahmedabad: Global brokerage Bernstein has retained its bullish stance on Adani Ports and Adani Power, saying the Adani Group has emerged stronger from recent regulatory and market-related challenges.
The global financial firm also maintained an ‘Underperform’ rating on Adani Green Energy due to demanding valuations.
In its latest assessment, Bernstein said it has closely tracked the group through two major events — the short-seller episode and the US SEC-DoJ issue — and believes the Group’s execution capabilities remain strong.
The brokerage noted that share pledges have nearly disappeared and leverage levels have come down, strengthening its view of the Group’s financial position.
Bernstein retained its ‘Outperform’ rating on Adani Ports, with a revised target price of Rs 1,973 per share, up from Rs 1,880 earlier.
The brokerage said it has raised its FY27 volume growth estimates based on strong performance from international ports, with July data showing growth of 12 per cent compared with 10 per cent earlier. It has also increased its target EV/EBITDA multiple from 16 times to 16.5 times.
The brokerage further said that Adani Ports remains one of its top picks, citing strong pricing power, expansion into logistics and relatively attractive valuations compared with peers. It also highlighted the company’s track record of acquiring and turning around assets.
Bernstein also retained its ‘Outperform’ rating on Adani Power, with a target price of Rs 220 per share against the current price of Rs 203.56. Its estimates put EBITDA at Rs 2,41,272 million for 2027 and Rs 3,02,594 million for 2028.
On Adani Green Energy, Bernstein maintained its ‘Underperform’ rating and cut its target price to Rs 980 per share from Rs 1,000 earlier. The brokerage said it had incorporated the latest contracted tariffs with Adani Energy Solutions and revised capacity-addition assumptions through 2030.
Bernstein expects Adani Green’s EBITDA estimates for FY27 to decline by 10 per cent following the revision in assumptions. It also changed its weighted average cost of capital estimate from 8.8 per cent to 8.6 per cent, citing a change in the debt-equity mix.
(IANS)
