Goldman Sachs raises Adani Ports target to Rs 855 on strong H2 outlook

Goldman Sachs has revised its price target for Adani Ports to Rs 855 from the previous figure, following a review of the company’s recent performance and future prospects. The new target comes after an analysis of the larger ports’ robust results, which suggest that Adani Ports may outperform in the second half of the fiscal year. The firm is optimistic that Adani Ports will surpass its FY24 volume guidance by achieving 407 million tonnes.

The positive projection is supported by the logistics arm’s potential for further growth through an integrated model, prompting Goldman Sachs to adjust its revenue and Ebitda forecasts for FY25 and FY26 upward. This outlook remains upbeat despite a 7% decline in the stock over the past three months. On Thursday, shares of Adani Ports saw a slight increase on the Bombay Stock Exchange (BSE), trading at Rs 793.60.

The company’s strategic focus on maintaining balanced growth while managing debt obligations has contributed to this favorable assessment. Additionally, positive developments in Myanmar and stability at Haifa Port amid regional tensions have further strengthened the stock’s future trajectory. However, Goldman Sachs also cautions that potential risks such as decreased export-import (EXIM) volumes or higher capital expenditures and acquisitions could pose threats to earnings and cash flow projections.

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