Morgan Stanley has upgraded Prestige Estates Projects Ltd. to ‘Equal-weight’, even as it reduced the target price to ₹1,370 per share. At a current market price of ₹1,375.50, the revised target reflects a neutral stance with limited upside in the near term.
The brokerage closed its earlier Underweight rating, citing an improved pre-sales growth outlook and a more balanced risk-reward profile. Morgan Stanley highlighted the company’s robust income-producing (IP) portfolio in the office and retail space, along with a potential upside trigger from a planned hotel IPO.
While the target was lowered due to recalibrated assumptions—applying a 20x FY26 P/E multiple to the residential segment to reflect moderating growth—Morgan Stanley noted that “the worst is behind.” The recent RERA approval for the Indirapuram project is expected to fuel pre-sales in Q1 or Q2 FY26.
Prestige Estates is likely to remain in focus as investors weigh near-term valuation pressure against an improved medium-term operational outlook.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
