Shares of ACME Solar rallied as much as 5% to their day’s high of Rs 421 on the BSE on Tuesday after HSBC upped the target price by 15% to Rs 450 from Rs 390 while retaining its Buy rating on the stock.
With a fresh target price of Rs 450, analysts predict that the stock can rally another 13.30% from current market levels. HSBC says there are signs of a recovery in renewable energy auction activity after a period of slower momentum over the past year. The brokerage noted that ACME converted 730MW of Letters of Award into power purchase agreements in Q2, which gives it greater confidence in the company’s ability to sustain business momentum.
