Bernstein Bullish On Adani Ports, Adani Power; Raises Adani Ports Target Price

Global brokerage Bernstein has retained its bullish view on Adani Ports and Adani Power, saying the Adani Group has emerged stronger from recent regulatory and market challenges.

The brokerage maintained an ‘Outperform’ rating on both Adani Ports and Adani Power, while keeping an ‘Underperform’ rating on Adani Green Energy due to valuation concerns.

Bernstein said it had closely tracked the group through the short-seller episode and the US SEC-DoJ issue. It noted that the group’s execution remained strong, while share pledges had nearly disappeared and leverage levels had declined, strengthening its financial position.

For Adani Ports, Bernstein raised its target price to ₹1,973 per share from ₹1,880 and retained its ‘Outperform’ rating. It increased its FY27 volume growth estimate after strong international port performance, with July growth reaching 12 per cent compared with an earlier estimate of 10 per cent.

The brokerage raised its target EV/EBITDA multiple from 16 times to 16.5 times. It identified Adani Ports as a top pick, citing its pricing power, logistics expansion, attractive valuations and track record of acquiring and improving assets.

Bernstein retained its ‘Outperform’ rating on Adani Power with a target price of ₹220 per share, compared with ₹203.56 currently. It estimated EBITDA at ₹2,41,272 million for 2027 and ₹3,02,594 million for 2028.

Bernstein maintained its ‘Underperform’ rating on Adani Green Energy and reduced its target price to ₹980 from ₹1,000.

The brokerage revised its capacity addition assumptions through 2030 and incorporated updated contracted tariffs.

Following these changes, Bernstein cut its FY27 EBITDA estimate for Adani Green Energy by 10 per cent. It lowered its weighted average cost of capital estimate from 8.8 per cent to 8.6 per cent, citing changes in the debt-equity mix.

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