The share price of Larsen & Toubro (L&T) gained 2.73 percent intraday on March 31 after Credit Suisse upgraded the stock to “outperform” from “neutral”, CNBC-TV18 reported.
"The risk-reward turned favourable with bottom valuations on stress case earnings," the brokerage said.
The stock has fallen 42 percent in the last two months due to weak market conditions and spiralling coronavirus cases.
Credit Suisse, however, cut the price target on the stock to Rs 1,100 from Rs 1,325 per share as engineering, procurement and construction (EPC) and macro risks remained pertinent.
It revised its earnings estimates lower by (3.4)/(16.3)/(17.2) percent for FY20/21/22. The stock trading below 10x on lower earnings can be the worst-case scenario, it feels.
The stock was trading at Rs 800.45, up Rs 1.80, or 0.23 percent, on the NSE at 1108 hours.
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