JP Morgan upgrades IDFC on attractive valuations

JPMorgan has upgraded Indian infrastructure finance company IDFC to “overweight” form “neutral”, saying a sharp drop in prices has made valuations attractive.

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“Fundamentally, we do not see any significant worsening from here on either asset quality or revenue growth,” the bank said in a note, adding that at 1.2 times one-year forward price to book value “the negatives are more than priced in”.

It also cut its target price to Rs 130 from Rs 140. The stock, which had halved in 2011, is trading down 0.61 percent at Rs 97.25 in a subdued Mumbai market.

Reuters