Morgan Stanley upgrades Reliance Infra to 'overweight'

Reuters Market Eye - Morgan Stanley upgrades Reliance Infrastructure Ltd to "overweight" from "equal weight" and raised its target price to 576 rupees from 489, citing favourable risk reward as price-to-book valuation multiples are at all-time lows.

"While there are no imminent earning triggers, the focus will be on delivery and improving fundamentals of the ADAG group," says Morgan Stanley in a report.

The investment bank adds that the recent deal between Reliance Communications Ltd and Reliance Industries Ltd's telecom unit Reliance Jio Infocomm may improve investors sentiment around Reliance Infra.

Earlier this month, Anil Ambani-controlled Reliance Communications, and brother Mukesh Ambani-controlled Reliance Industries signed a pact which would allow Reliance Jio to use the fibre optic network of Reliance Communications, signalling the first sign of thaw in relation between the estranged brothers.

 

At 12:38 p.m., Reliance Infra shares are down 1 percent.

(Reporting by Abhishek Vishnoi)