Freeport-McMoRan stock tumbles after Trump imposes copper tariffs
On Monday, CLSA downgraded Gujarat State Petronet (NSE:GSPT) (GUJS:IN) stock rating to Underperform from Hold, alongside a reduction in the price target to INR295 from INR370. The decision followed Gujarat State Petronet’s (GSPL) recent performance which, despite a strong standalone Ebitda surpassing CLSA’s estimates due to better blended tariffs and lower costs, faced a quarterly decline in overall volumes attributed to reduced power demand in the third quarter. However, the city gas demand, primarily driven by Gujarat Gas (GGas), showed an increase quarter over quarter.
The research firm acknowledged a significant outperformance in profit after tax (PAT), propelled by higher-than-expected other income. This led to an upward revision of the forecast for FY25CL earnings per share (EPS) by 4%, though projections for FY26-27 remained mostly unaltered. The downgrade in GSPL’s stock rating and price target was influenced by the recent cut in the price target for GGas to INR385.
The adjustment of the price target for GSPL is based on the share swap ratio that was agreed upon under the merger scheme with Gujarat State Petroleum Corporation (GSPC) and GGas. The new price target suggests an 11% downside from the previous target, prompting CLSA to shift its recommendation to Underperform.
CLSA’s revised outlook on Gujarat State Petronet comes in the wake of the company’s QoQ volume decline due to the lower power demand in the third quarter. Despite the robust city gas demand led by GGas, the research firm sees potential headwinds for GSPL, leading to the reduced price target and rating downgrade.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.