Global research firm Bank of America Merrill Lynch (BofAML) has initiated a buy rating on real estate company Prestige Estates Projects with a target price of Rss 334. The research firm believes that rental income is likely to double in four years given renewal of existing contracts and upcoming lease assets.
According to BofAML, Prestige Estates is expected to show growth of earnings per share (EPS) at coupound annual growth rate (CAGR) of 40 percent over FY17-19 while on the other hand return on equity (RoE) is set to rise to 10 percent in FY19.
The forcasted growth for Prestige Estates will be led by foray into affordable housing and potential strategic sale of commercial assets.
In the first quarter of FY17, the company posted a net profit of Rs 119 crore as against Rs 70 crore in the same qaurter last year, a gain of 70 percent.
At 09:50 hrs Prestige Estates Projects was quoting at Rs 271.65, up Re 1, or 0.37 percent. It has touched an intraday high of Rs 277.20 and an intraday low of Rs 269.80.
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