Suzlon Energy shares were locked in 5 percent upper circuit after Morgan Stanley issued BUY Call for the stock. At TopNews, we have earlier discussed that Suzlon Energy could find support around Rs 60 and bounce back. The stock could soon reach 52-week highs but it will largely depend on the news on this counter. Suzlon is heavily traded stock and any momentum can also lead to selling pressure at higher levels. Suzlon has jumped 42 percent over the last six months but during the last one month, the returns have been 11 percent negative on the green energy major.

Morgan Stanley has upgraded Suzlon Energy Ltd. to "overweight", highlighting a potential upside of 20% with a price target of Rs 71. The brokerage views the recent 38% correction in Suzlon’s stock price as a compelling buying opportunity. Despite revising FY2025 sales volumes downward, Morgan Stanley remains optimistic about Suzlon’s market share growth, its robust 5.1 GW order backlog, and its critical role in India’s energy transition. This upgrade reinforces confidence in Suzlon's prospects as a leading player in the wind energy sector.

Morgan Stanley Upgrades Suzlon to "Overweight"

Key Rating Change:

Previous Rating: Equal-weight.
New Rating: Overweight.
Price Target: Rs 71, implying a 20% upside from the last closing price.
Morgan Stanley’s revised stance reflects confidence in Suzlon’s strategic positioning amidst growing demand for wind energy solutions in India.

Stock Correction Presents a Buying Opportunity

Recent Performance:

Shares of Suzlon have corrected 38% from a peak of Rs 86.04 as of November 13.
A 9% drop on November 13 prompted the price band to be revised to 5% from 10%.
Brokerage View:

Morgan Stanley considers this steep correction an opportunity to accumulate shares of Suzlon for long-term gains.

Growth Potential in the Wind Energy Market

Market Share Expansion:

Suzlon’s market share in wind energy is projected to grow from 25% in FY2024 to 35%-40% by FY2027, driven by its competitive edge in the sector.
Order Backlog:

Suzlon has a 5.1 GW order backlog, executable within the next 24 months, aligning with India’s aggressive renewable energy targets.
Moat and Growth Opportunity:

The company’s strong business moat and positioning as a key player in the wind OEM market underpin Morgan Stanley’s bullish outlook.

Sales Volume and Projections

Revised Estimates:

FY2025 sales volume has been lowered to 1.3 GW from 1.5 GW, reflecting near-term challenges.
However, total sales volumes for FY2025-2027 remain unchanged at 7.15 GW, highlighting long-term stability.
India’s Energy Transition:

Suzlon is positioned as a beneficiary of India’s shift towards renewable energy, ensuring sustained demand for wind energy solutions.

Analyst Ratings and Competitive Outlook

Broker Consensus:

Out of five analysts covering Suzlon, three recommend "buy", while two maintain a "hold" rating.
Anand Rathi has set the highest price target at Rs 82, showcasing broader optimism about Suzlon’s potential.
Strategic Edge:

Suzlon’s focus on operational efficiency, growing market presence, and robust order execution strengthens its appeal among investors and analysts alike.