JP Morgan upgrades JSW Steel, citing weaker rupee

Reuters
Workers tend to a furnace at a steel factory in the outskirts of Coimbatore
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Workers tend to a furnace at a steel factory in the outskirts of Coimbatore January 7, 2013. REUTERS/Babu/Files

Reuters Market Eye - J.P. Morgan upgrades JSW Steel Ltd(NSI:JSWSTEEL.NS - News) to "overweight" from "neutral" and raises its target price to 850 rupees from 720, citing rupee boost to export earnings followed by margin expansion from new projects.

The investment bank says JSW is a key beneficiary of a weaker rupee and expects exports to be around 25 percent of the company's total sales in FY14.

Domestic cost pressures have peaked out, while iron ore availability should improve gradually, allowing higher utilisation for the company, it added.

($1 = 63.2300 rupees)

(Reporting by Abhishek Vishnoi)

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