Global brokerage firm Jefferies has initiated coverage on renewable energy stock Waaree Energies Ltd. with a ‘Hold’ recommendation.

Jefferies has a price target of ₹2,030 for Waaree Energies, which implies a potential downside of 4% from Thursday’s closing levels. The stock has already corrected 43% from its post-listing peak of ₹3,743, which it had hit on November last year.

The foreign brokerage expects India’s solar installations to grow at an annual rate of 24% from FY24 to FY30.

Jefferies mentioned in its note that the government policies favoring domestic modules and US policies discouraging Chinese modules have created attractive economics for Waaree, aided by backward integration.

However, Jefferies expects the tide to turn by late 2027 as India faces an oversupply situation and the US nears self-sufficiency.

The brokerage values Waaree based on normalised profits. It also said that stronger solar installation growth and policy changes are key upside and downside risks.

Earlier, Kotak Institutional Equities initiated coverage on Waaree Energies with a ‘Sell’ recommendation. Kotak has a price target of ₹2,550 for Waaree Energies.

The brokerage said that it has a ‘Sell’ rating on Waaree also due to elevated valuations and it expects a 35% earnings CAGR between financial year 2024-2030.

For Waaree, this is the second analyst coverage after listing.

Waaree Energies has been among the successful listings of 2024, but the stock is now in correction mode after making a post-listing high.

Shares of Waaree Energies ended 0.22% higher on Thursday at ₹2,124.45. The stock has risen over 40% from its issue price of ₹1,503 per share.