Credit Suisse Downgrades Coal India To ‘Neutral’

Credit Suisse, the leading global financial services company headquartered in Zurich, downgraded Coal India shares to ‘neutral’ from ‘outperform’, but raised its target price to Rs 380 from Rs 330.

The company said Coal India is no longer cheap, while noting it is difficult to see an improvement in the sector within 3-4 years.’ Coal India shares have uspide risk until the government's restructuring plans are announced, Credit Suisse said.

India’s new Prime Minister Narendra Modi is exploring breaking up Coal India and opening up the sector to foreign investment, two sources with knowledge of the matter were quoted as saying.

"Till government's plans for restructuring are known, CIL can become a concept stock with upside risk," Credit Suisse said in a note on June 2.
Image: The Economic Times