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HomeMarket NewsSona BLW's emerging biz will drive next phase of growth; UBS projects 16% upside
According to the brokerage, Sona BLW is entering a new phase of growth, supported by strategic investments, new partnerships and initiatives that are expanding its addressable market.
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Shares of Sona BLW Precision Forgings Ltd. traded higher on Tuesday, July 21, after UBS initiated coverage on the auto components maker with a 'Buy' rating and a Street-high price target of ₹830 per share.
The target price, which suggests an upside of 16%, is the highest among brokerages covering the stock.
According to the brokerage, Sona BLW is entering a new phase of growth, supported by strategic investments, new partnerships and initiatives that are expanding its addressable market.
UBS expects the company's emerging businesses to scale up rapidly over the next five years, creating additional growth drivers beyond its existing portfolio.
The brokerage forecasts a consolidated revenue CAGR of 20% and an earnings CAGR of 25% over the next five years, driven by an increasingly diversified revenue mix and continued execution of its expansion strategy.
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