Morgan Stanley has initiated coverage on Power Grid Corporation of India (PFC) stock with an 'overweight' rating and a target price of 124 rupees because it believes that company's government-regulated model offers earnings visibility,and that India's structural demand for transmission capacity will drive 12 per cent earnings growth for FY11-14. We believe the shares provide a solid defensive investment in the current environment,offering low beta,supported by the company's earnings visibility (because of its regulated business model),cleaner balance sheet,and strong execution track record,said Morgan Stanley in a note on Tuesday. At 9:30 am shares of Power Grid were up 1.37 per cent,at 96.55 rupees.
