Reliance shares have rallied a substantial bit in trade after the March low, having run up to an all time high price of Rs. 2198.70, and considering the record surge global firms have been downgrading the stock from CLSA to Goldman Sachs.
In July alone, the stock of RIL has jumped by a huge 27% with a year to date rally of 45% as against Sensex which is down by 7% so far.
CLSA Downgrades RIL Stock to 'Buy'
CLSA downgrades stock to 'Buy' from 'Outperform' and said its long-term promise and underweight position in portfolios may support the stock price, large valuation surprises may be difficult in the near term. The agency sets a target price of Rs. 2250 per share given the street high valuation for R Jio and Retail. CLSA expects the company's market capitalization to cross $220 billion by March 2022.
"Any big surprise beyond $70 billion, if and when the stake in Retail is sold, could be needed to justify large immediate upside," CLSA said in a note on 28 July.
Golman Sachs holds its Buy rating on RIL stock
Goldman Sachs while raising its 1-year target price for the stock to Rs. 2325 maintains a buy rating on the RIL stock. "We are raising our valuation for the TMT (technology, media and telecom) businesses mainly to reflect faster-than-expected e-commerce roll out and monetization of the app ecosystems at Jio Platforms,"Goldman Sachs analysts said in a note Tuesday.
As per analyst on Bloomberg, the RIL stock has 28 'buy' ratings, three 'hold' ratings and five 'sell' ratings.
RIL stock in trade on July 29, 2020 were dragged close to 2% to day's low price of Rs. 2135.55 per share on the BSE.