Key facts
- UBS downgraded BHEL to Neutral from Buy.
- The brokerage raised its price target to Rs 460 from Rs 375.
- UBS cited a more balanced risk-reward outlook for the downgrade.
- The firm believes BHEL's order book growth is reflected in the stock price.
UBS has downgraded Bharat Heavy Electricals Limited (BHEL) shares to a "Neutral" rating from "Buy". The brokerage cited a more balanced risk-reward outlook for the stock following its recent strong performance. Despite the downgrade, UBS increased its price target for BHEL to Rs 460 from a previous target of Rs 375. This new target implies a potential upside of approximately 14%. However, UBS indicated that much of the anticipated growth in BHEL's order book appears to have already been factored into the current stock price.