Street Calls of the Week
Investing.com - Nomura/Instinet initiated coverage on Prestige Estates Projects Ltd (NS:PEPL) with a Buy rating and a price target of INR1,900.00 on Wednesday.
The research firm cited the company’s pan-India growth strategy as superior to peers, with strong scale-up potential particularly in Mumbai and the Delhi National Capital Region through both mid-income township and luxury projects.
Nomura expects Prestige Estates’ superior execution to help scale its annuity and hotel EBITDA 4-5 times over the next 4-5 years, while noting the stock currently trades at approximately 40% premium to NAV, lower than competitor Godrej Properties.
The firm believes Prestige Estates will exceed its FY26E pre-sales guidance of approximately INR260 billion by more than 10%, with additional upside potential.
Nomura identified potential downside risks including a slowdown in the Bangalore real estate market or weaker-than-expected leasing of annuity assets.
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