Ola Electric shares gained 5 percent in early trading on September 17, climbing to ₹113 after receiving positive coverage from two major brokerages—Bank of America (BofA) and Goldman Sachs. Both firms have issued a 'buy' recommendation on the stock, citing a promising outlook for the electric vehicle manufacturer. With this latest development, the company's performance shows renewed momentum, making it an appealing option for those interested in share market investment.
Brokerage targets highlight strong growth potential
Goldman Sachs has set a target price of ₹160 for Ola Electric, while BofA has pegged its target at ₹145 per share. Goldman's target suggests a potential upside of 50 percent from the last close on the National Stock Exchange (NSE). The brokerage expects the company to capitalise on the growing demand in India's electric two-wheeler market, making it a strong choice for those looking to invest in share market investment opportunities.
Ola Electric well-positioned for market growth
Goldman Sachs believes that Ola Electric is well-positioned to leverage long-term structural trends in India's electric vehicle space. The firm anticipates the company will achieve EBITDA breakeven by FY27, with revenue growth projected at over 40 percent CAGR between FY24 and FY30. This outlook presents a positive future for share market investment, with Goldman forecasting free cash flow breakeven by FY30, along with an EBITDA margin of 12 percent and a return on invested capital (ROIC) of 27 percent.
BofA highlights technology and cost leadership
Bank of America has also expressed confidence in Ola Electric's ability to drive the transition from traditional two-wheelers to electric vehicles. According to BofA, Ola's technological advancements and cost-efficiency position it as a leader in the industry, adding to the attractiveness of share market investment in the company. While BofA acknowledges potential risks around battery technology, they view the stock as a strong long-term bet for investors looking to invest in stocks with growth potential.
Stock performance and market reaction
The positive ratings from these leading brokerages helped Ola Electric break a four-day losing streak. As of 9:20 am, the company's shares were trading at ₹112, up by 4.7 percent from the previous close on the NSE. Despite a challenging month in which the stock slipped nearly 20 percent, these recent gains offer optimism for those looking to make a share market investment in Ola Electric.
Outlook for long-term investors
Ola Electric is expected to experience strong growth in the coming years, with its leadership in the electric two-wheeler market and strategic positioning providing a solid foundation for future expansion. For those focused on long-term opportunities in the market, investing in companies like Ola Electric could yield significant returns. If you're considering a share market investment, this stock's promising outlook and recent brokerage endorsements make it worth watching closely.
Investors seeking to invest in stocks with strong growth potential may find Ola Electric an attractive option, particularly given the current momentum in the electric vehicle industry in India. The recent 'buy' ratings from BofA and Goldman Sachs further support this view, as both brokerages project substantial upside potential for the stock.
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