Hindustan Zinc Shares Soar 3% on Jefferies Target Hike

Hindustan Zinc shares surged nearly 3% in early trade on August 26 after Jefferies raised its target price, citing a favorable combination of higher zinc and silver prices.

The brokerage maintained its 'Buy' rating on Hindustan Zinc and increased the target price to Rs 750 per share from Rs 660 earlier, implying an upside of around 27% from the August 25 closing price.

Jeanferies prefers Hindustan Zinc over Hindalco as the recent divergence in commodity prices has improved the earnings outlook for the zinc and silver producer while creating a less favorable backdrop for the aluminium major.