Stories
Analysts Initiate Coverage: Bank of America Bets on Ather Energy, Kotak Cautious on Indo-MIM
- •Bank of America Securities initiated coverage on Ather Energy with a "buy" rating and a ₹1,900 price target, citing India's EV adoption tipping point and Ather as a key player.
- •Bank of America is cautious on PhysicsWallah, initiating with an "underperform" rating due to concerns over earnings inflection timing, rich valuations (71x FY28 P/E), and unproven offline economics.
- •Kotak Institutional Equities initiated coverage on Indo-MIM with a "reduce" rating, despite its strong market position, due to the stock's rapid 140% surge from its issue price post-listing.
- •Ather Energy's growth is expected to be driven by its EL platform and AURIC, unlocking market expansion and capacity scale, with demand currently exceeding supply.
- •All 16 analysts tracking Ather Energy currently have a "buy" rating, and the stock has seen a 115% increase year-to-date.
Key Questions Answered
Bank of America initiated coverage on Ather Energy with a "buy" rating and a price target of ₹1,900, which indicates an upside potential of nearly 20% from current levels.
Bank of America expressed caution regarding the timing of PhysicsWallah's earnings inflection and its rich valuations, which trade at 71 times their financial year 2028 estimated price-to-earnings. Additionally, with offline economics remaining unproven, the brokerage expects slower center additions and projects EBITDA estimates 10% to 15% below the street consensus.
Kotak Institutional Equities issued a "reduce" rating with a price target of ₹1,110 because the stock has already surged 140% from its issue price within a short time following its listing, despite the company being well-positioned for localization in aerospace, defense, and electronics.
