Credit Suisse downgraded government-controlled Coal India Limited (CIL) to "neutral" from "outperform", but raises its target price to Rs 380 from Rs 330.
The investment bank said Coal India "is cheap no longer" while noting that "it is difficult to see volumes improving within 3-4 years”.
Still, Credit Suisse said Coal India shares have uspide risk until the government's restructuring plans are unveiled.
Prime Minister Narendra Modi is exploring breaking up Coal India and opening up the sector to foreign investment, two sources with knowledge of the matter told Reuters on May 21.
"Till the government's plans for restructuring are known, CIL can become a concept stock with upside risk," Credit Suisse said in a note on Monday.