Business News : Investors who like multibagger green energy stock Suzlon may get a shock ahead. Global brokerage firm Morgan Stanley has changed the rating of Suzlon Energy. The rating of Suzlon shares has been reduced from overweight to equalweight. However, the target price of Suzlon shares has been increased.

The impact on the stock on Friday

Morgan Stanley has downgraded the rating of Suzlon Energy shares from overweight to equalweight. After this, the shares of the wind energy solutions company fell by 2 percent to Rs 80.5 on Friday. However, later the stock recovered and after the end of trading, it closed at Rs 81.20 with a decline of 0.78 percent.

The target price was increased so much

Calling a stock overweight means that it will perform better than other stocks in its sector. Equal weight means that the stock's return will be the same as that of the rest of the stocks in the respective index or industry. However, despite reducing the rating, Morgan Stanley has increased the target price for Suzlon to Rs 88. Earlier it had given a target of Rs 73 to this stock. This means that the stock can give a return of 8 percent from Friday's closing price.

The stock gave such returns in the past days

Suzlon has proved to be a stock giving multibagger returns for investors in the recent past. Suzlon has given a return of 111 per cent in the last 6 months, while in a year this stock has given a strong return of more than 216 per cent to the investors... Suzlon stock has performed brilliantly on the back of excellent growth in the order book, improvement in the company's balance sheet and strong cash flow from operations.

Huge orders expected

Morgan Stanley believes that amid favorable competition, Suzlon remains a key beneficiary of the growth of India's wind energy sector and has the potential to increase its market share to between 35 and 40 percent. Order activity in the renewable energy sector remains strong. Morgan Stanley expects 32 gigawatts of new orders from FY25 to 2030.

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