India's largest real estate developer, DLF, experienced a rise of 3.2 percent in its shares, reaching 188.10 rupees. This surge followed Goldman Sachs' upgrade of the stock's rating from "neutral" to "buy." Moreover, it elevated the 12-month target price from 252 rupees to 264 rupees.
Reasons for the Upgrade
Goldman Sachs cited several factors influencing the decision to upgrade DLF's rating. These include:
- An increase in the number of new residential projects being launched.
- A notable recovery in the commercial property sector.
- A reduction in interest rates.
- Improved expectations for both asset sales and operating/financial leverage.
DLF's Performance
Despite the recent upgrade, DLF's share price has decreased by 0.5 percent in 2012. During the same period, the BSE Sensex has increased by approximately 11 percent.
The upgrade closely follows DLF's removal from the Sensex, scheduled to take effect on June 11.