Bernstein has downgraded Indian Energy Exchange (IEX) to Underperform and slashed its target price to ₹99, implying a downside of approximately 28.6% from the current market price of ₹138.79.
The downgrade comes as Bernstein sees the market coupling regulation by CERC as more damaging than earlier anticipated, significantly impacting IEX’s dominant market position. The brokerage believes there is little chance of overturning the order, as it aligns with the regulatory framework laid out in 2021.
Further downside risks include potential transaction charge reforms and rising competition due to falling entry barriers, which could pressure both market share and profitability in the coming years.
Disclaimer: This article is based on Bernstein’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
