Suzlon Energy stock initiated with Buy rating at UBS on wind energy upcycle

Published 04/08/2025, 16:32
Suzlon Energy stock initiated with Buy rating at UBS on wind energy upcycle

Investing.com - UBS initiated coverage on Suzlon Energy (NSE:SUZL) (NS:SUEL) with a Buy rating and a price target of INR78.00, citing the company’s strong position to benefit from India’s power sector upcycle.

UBS expects Suzlon’s annual deliveries to increase from 1.5GW in FY25 to 4.2GW in FY28, which would translate to 41% revenue CAGR and 46% EBITDA CAGR during that period.

The investment bank highlighted Suzlon’s advantages over competitors, including its backwardly integrated supply chain, highest installed capacity, and market-leading 35% share in the Indian wind energy sector.

UBS believes the market is not fully pricing in potential margin expansion driven by operating leverage and the wind energy upcycle, with its FY26/27 EBITDA forecasts running 7%/6% above consensus estimates.

The INR78.00 price target is based on a 30x 12-month forward PE multiple, which includes a 20% discount to historical peak valuations for the wind energy manufacturer.

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