India's Prestige Estates falls after Morgan Stanley cuts to 'underweight'

Prestige Estates Projects

27/11/2024 07:15

** Shares of property developer Prestige Estates Projects
 PREG.NS  fall as much as 5.1% to 1,620 rupees
    ** Morgan Stanley downgrades stock to "underweight" from
"overweight", cuts TP to 1,510 rupees from 1,770 rupees
    ** New TP is at a discount of 11.5% to stock's last close at
1,706.15 rupees
    ** Reduce our FY25 pre-sales growth estimate to +9% Y/Y from
28% since co achieved only 29% of its FY25 target in 1HFY25 -
brokerage
    ** Adds, PREG's last twelve month avg. pre-sales growth is
weakest among peers (-2% Y/Y, -15% Q/Q)     
    ** PREG's 2HFY25 launch pipeline of 5.21 bln rupees ($61.7
mln) is strong, however uncertainty over approval remains -
Morgan Stanley
    ** Avg rating of 16 analysts equivalent of "buy", median PT
is 2,020 rupees - LSEG data
    ** Stock last down 4.2%, trimming YTD gains to 38.6%





($1 = 84.4630 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))