BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Jefferies has lowered its price target on Gail (India) Ltd. (NS:GAIL) to INR205.00 from INR210.00 while maintaining a Buy rating on the stock.
The research firm cited the company’s reduced transmission volume guidance as a key factor for the adjustment. Management lowered transmission volume guidance by 4% for both fiscal years 2026 and 2027, indicating no growth expected in the current fiscal year.
Jefferies noted that Gail’s reported adjusted EBITDA decreased 29% year-over-year, with transmission and trading segments performing marginally ahead of expectations. The results were in line with Jefferies’ estimates.
Despite lowering EBITDA forecasts by 1% for FY26 and 2% for FY27, Jefferies maintained its Buy rating, suggesting the current valuation at long-term average forward PE multiple does not account for a potential tariff increase.
The firm highlighted that a likely tariff hike of 10% could add approximately 12% to the company’s fair value, potentially offsetting concerns about flat transmission volume growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.