HSBC reiterates underweight rating on Suzlon Energy

HSBC has reiterated its 'Underweight' rating on Suzlon Energy and cut the target price to Rs 10 from Rs 20.

HSBC values the stock on a RoE-implied P/B multiple as it better captures the sector's market value, reflecting the current uncertainties.

This leads to a target price of Rs 10. Suzlon has underperformed Sensex by over 50% in the past 12 months.

However, HSBC is cautious given increasing pricing pressure, market share loss and balance-sheet restructuring requirements in very difficult markets.