Morgan Stanley has downgraded Kaynes Technology to equal-weight and revised its target price to Rs 6,155, implying a downside of about 2% from the current market price of Rs 6,260.00.
The brokerage noted that the stock has outperformed the Sensex by 40% over the past three months and now trades at 67 times FY27 estimated earnings for its core EMS business. This valuation, it added, already factors in a 39% core EBITDA CAGR between FY25 and FY30.
Morgan Stanley stated that future cash flow generation and timely execution of new business will be key to justifying current valuations.
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