Goldman Sachs Pumps Up Hindustan Aeronautics Shares with Upgrade
Hindustan Aeronautics Ltd. (HAL) shares surged by as much as 5% on Thursday, August 6, after a positive upgrade from Goldman Sachs.
The brokerage firm raised its rating on HAL to 'buy' from its earlier 'neutral', and also increased the price target to ₹5,870, indicating an upside potential of 26% from Thursday's closing levels.
Goldman Sachs cited three key factors behind their upgrade: improved execution expected in the second quarter, streamlined deliveries of F-404 engines by GE Aerospace, and an underestimation of HAL's earnings prospects on other platforms beyond the LCA Tejas Mk1A.
HAL plans to deliver 20 aircraft in FY27, a significant increase from the initial target of 12 in FY26. The company's order book stands at ₹2.5 lakh crore, with the LCA mk1A order worth ₹48,000 crore.
The consensus estimates among analysts have HAL shares rising by up to 10.1% from current levels, with 23 out of 28 having a 'buy' rating on the stock.