Morgan Stanley has maintained its overweight rating on PNB Housing Finance with a target price of ₹1,170 after India Ratings upgraded the company’s long-term rating to AAA. The brokerage said the upgrade is positive for growth and profitability, as it could improve access to funds and lower the cost of borrowing over time, directly benefiting spreads and future loan growth.
According to Morgan Stanley, the rating upgrade, coupled with strong execution in the second quarter of FY26, should further enhance investor confidence. The brokerage believes the company’s valuations—at 1.1x FY27 estimated price-to-book and 9x FY27 estimated price-to-earnings—look attractive at current levels. Morgan Stanley added that the awaited CEO appointment could also serve as a catalyst for re-rating.
Disclaimer: The views above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
