Brokerage firm Morgan Stanley maintains a bullish outlook on the real estate sector, as it believes that the upcycle could turn into a multi-year phenomenon aided by strong macro and favourable industry structure.
This upcycle for the real estate sector started in 2021 in terms of average selling price growth and is aided by strong demand due to resilient macros, lower leverage, industry consolidation and measured price increases, Morgan Stanley has said.
Baking in these expectations of a strong show from the real estate sector, the broking and research house also raised the price target for several realty stocks. The brokerage firm raised its price target for Prestige Estates nearly three times, the steepest within the pack, to Rs 1,300 from Rs 524, as it retained its "overweight" call on the stock.
DLF was another stock with an "overweight" call whose price target was increased by over 40 percent to Rs 770.
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Other stocks, Macrotech Developers, and Godrej Properties, both of which enjoy "equal-weight" ratings from Morgan Stanley saw their price targets revised upwards by around 68 percent and 51 percent to Rs 960 and Rs 2,050, respectively.
Though the brokerage house remains positive on the realty space, it also said that the scope for a meaningful downside also exists within the sector.
On that account, the firm downgraded Oberoi Realty to "underweight" even while raising the price target to Rs 1,180 from Rs 885.
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