Shares of Sterlite Technologies jumped 4% to Rs 1,038 on the BSE on Tuesday after Japanese brokerage Nomura initiated coverage on the Vedanta-backed stock with a Buy rating and a target price of Rs 1,350, forecasting a massive 48.5% upside from current market levels.
Nomura said Sterlite Tech is well positioned to benefit from strong demand for optical fibre cables (OFC), supported by its integrated manufacturing capabilities. The brokerage said this gives the company an advantage in gaining market share as non-integrated peers face supply bottlenecks in preforms. Sterlite Tech has already secured major contracts from hyperscalers and has a broad portfolio of data centre (DC) offerings.
