Coal India upgraded to overweight

Morgan Stanley upgraded Coal India to overweight from equalweight and raised target price to 397 rupees from 392 rupees citing more confidence in the company8217;s pricing power.

Also supporting the view are the company8217;s return to historical volume growth of 5 per cent,solid return ratios and free cash flows.

We believe that the probability of a dividend payment which CIL management prefers has grown versus the less-preferred option of cross-holdings in other PSUs,said Morgan Stanley in a note.

At 10:43 a.m,shares of Coal India were up 2.61 per cent at 349.80 rupees.