Defense, aerospace focus makes Morgan Stanley bullish on Bharat Forge; Jefferies sees export headwinds

Morgan Stanley is bullish on Bharat Forge shares and has maintained an ‘Overweight’ rating on this stock. The brokerage firm derives its optimism from company’s focus on sectors such as defense, aerospace and electric vehicles. It is of the view that the company will look to tap new business avenues while strengthening its core portfolio.  

It has put the price target of Rs 1035, estimating a 20 per cent upside from the level of Rs 857 at which the stock was recommended.  

Bharat Forge shares were trading at Rs 871 on NSE, up by Rs 13.60 or 1.59 per cent from the Friday closing price. 

Another brokerage, Nomura has maintained a ‘Buy’ on this stock for a target of Rs 1021. 

Jefferies on the other hand sees headwinds in company’s business including cyclical ones related to exports. The brokerage firm has put a target of Rs 555 per share estimating a 35 per cent fall.  

Meanwhile, JP Morgan has maintained ‘Neutral’ rating for a target of Rs 865.  

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Technical View 

Analyst Nilesh Jain said that the current chart structure does not inspire a conviction on buying this counter.

However, it could be a good buy at levels of Rs 840, Jain said adding that the structure looks positive. 

He puts a stop loss at Rs 800 and price target at Rs 900.  

Bharat Forge shares have been moving both ways over the past one month. After falling to low of Rs 826, the stock has regained levels of Rs 870. 

The stock has outperformed Nifty50 by over 14 per cent according to data sourced from Trendlyne. It has given over 20 per cent returns in 1 years against 5.4 per cent by Nifty50 during this period.  

RSI for this stock is 55.7, RSI below 30 is considered oversold and above 70 overbought. Meanwhile, its MFI is 62.9 - level below 30 is considered oversold and above 70 overbought.  

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)