Prestige Estates Stock Hits All-Time High; CLSA Reaffirms 'Buy' Rating with 16% Upside

Prestige Estates Share Price Hits New Heights as CLSA Reaffirms 'Buy' Rating and Raises Target to ₹2,320

India Business Jun 14, 2024 0 48 Add to Reading List

Prestige Estates Stock Hits All-Time High; CLSA Reaffirms 'Buy' Rating with 16% Upside

Prestige Estates shares surged over 6% to reach a new all-time high today, June 14th. The increase followed an endorsement from global brokerage CLSA, which reaffirmed its 'Buy' rating on the stock and raised the target price to ₹2,320. This adjustment suggests a potential upside of more than 16% from the current price levels.

CLSA underscored that Prestige Estates' valuations are lower compared to its industry peers and downplayed concerns regarding its debt. The brokerage emphasized the importance of operational cash flow in funding the company's capital expenditures and expanding its project pipeline.

Elara Securities has issued a 'Buy' rating for Prestige Estates, setting a target price of ₹2,300 per share. They pointed out, "Prestige Estates Projects expects a 25% year-on-year growth in presales for FY25, driven by planned launches totaling ₹60,000 crore." Elara also highlighted Prestige's robust position in Bengaluru's housing market, consistently maintaining approximately 10% of the volume market share. They emphasized the company's effective utilization of joint development agreements (JDAs) for land acquisition and its industry-leading execution speed as critical factors driving growth in the residential segment.