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Investing.com - JPMorgan has initiated coverage on Amber Enterprises India (NSE:AMBE) Ltd (NS:AMBER) with a Neutral rating and a price target of INR7,350.00.
The investment bank expects Amber to achieve a 23% revenue compound annual growth rate (CAGR) over fiscal years 2025-2028, primarily driven by the Electronic Manufacturing Services (EMS) segment, including both Printed Circuit Board Assembly (PCBA) and bare Printed Circuit Board (PCB) operations.
JPMorgan anticipates this growth will help Amber’s margins expand by approximately 100 basis points during the forecast period, though the firm expressed skepticism about growth potential in consumer durables due to brands insourcing component manufacturing rather than relying on AC assembly.
On a positive note, JPMorgan expects the stock to receive support from seasonal thematic interest as a beneficiary of widespread heatwaves across the region.
The firm values Amber at 42x June 2027 earnings, lower than peer Dixon’s 57x multiple, which JPMorgan believes is justified due to lower growth expectations for Amber, with current valuations at 41x FY27E price-to-earnings ratio leaving limited room for upside.
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