JP Morgan upgrades Adani Ports' rating to 'Overweight'

JP Morgan has upgraded the rating of Adani Ports to 'Overweight' and revised the target price to Rs 160.

It considers Mundra Port will be in a sweet spot over the next five years with spare capacity in high growth coal and container cargo segments.

Actual 11th Plan investments by overburdened major ports have slipped 75% versus target and a scalable non-major port alternative to Mundra on the west coast is still elusive.

The stock has underperformed the Sensex by ~20% over the past six months on account of unfavorable news flow and slippages in traffic driven by delayed commissioning of end-use customer projects and weak GDP growth.