Adani shares soars post brokerage firm Cantor Fitzgerald's "too big to ignore" comment

Adani companies' shares spiked after Brokerage Firm Cantor Fitzgerald, initiated coverage for the Adani Enterprises stock with an ‘overweight’ call rating. It went on to call the firm "too big to ignore".

Analysts on Adani Enterprise

Cantor had set the target price of Rs 4,368 per share, expecting an upside of over 50% on Adani Enterprises shares. However, the share prices ended at Rs 3,061 on Monday.

The brokerage firm said its valuation is based on Adani's airports, roads, solar, wind and electrolysers segments, where it expects to outgrow peers. It also expects airports, new energy ecosystem and data cente JV to be spun out.

In addition, the brokerage expects Adani Enterprises to rely less on outside capital in the coming years with greater margin improvement. Analysts Brett Knoblauch and Thomas Shinske also noted that "Adani Enterprises Ltd. is at the core of everything India wants to accomplish," while initiating coverage as overweight.

According to data compiled by Bloomberg, Cantor Fitzgerald is the only one with an active recommendation on the stock.

Adani shares performance

On Monday's close all the Adani company shares ended in green with Adani power and Adani Enterprise ending 5% higher Adani Group - saw a growth of over 4.5%. Similarly Adani Energy Solutions rose 3.5%, Adani green energy 2.87%, Adani Ports 4.2%, Adani Total Gas 3.13%, Adani Wilmar 2.56%