We are revising our recommendation on Sesa Goa. However, we are not altering our earning’s estimates and valuation.
Given the sharp 45% rally in the stock price in the last three weeks, the expected upside to our target price stands considerably reduced, prompting us to change our recommendation to ACCUMULATE from Buy.
The target prices remains unchanged at Rs123 based on 2.5x EV/EBITDA for FY09E.
We feel while traders can book partial profits, investors with medium-term outlook should continue to hold for time being as some interesting developments may unlock better value in the near term.