Analysts' picks: Lanco Infratech

CMP: Rs 178.60

Target price: Rs 250

UBS Securities has upgraded its rating on the stock to ���buy��� from ���sell���, but has trimmed the price target to Rs 250.

The firm has cut its earnings per share(EPS) estimates for the stock by 10%/20%/19% to Rs 19/22.4/33.3 for FY09/10/11E to reflect a slowdown in project execution. It has also made of 10% discount to the power, engineering procurement and construction (EPC) business and infrastructure valuation for the company.

���Around 90% of EPC���s projects are internal, and we believe the future order inflow is thus at risk; we lower our order inflow estimates by 44% for FY09-11E,��� said UBS in a note to its clients.

���However, the impact on revenues is not substantial in initial years. We have not changed our margin for FY10/11, which we believe is conservative enough,��� the note said.

According to the firm, the stock is trading at 9.5 times FY09E EPS, which it sees as a good buying opportunity.