Power Finance Corporation and REC shares fall up to 3% after Morgan Stanley downgrade

PFC-REC merger may bring limited cost savings; some revenue benefits possible: Morgan Stanley

Morgan Stanley said it sees limited scope for cost savings from the merger because both companies already have low operating costs

Power Finance Corporation and REC shares fall up to 3% after Morgan Stanley downgrade

PFC and REC shares fell on Thursday after Morgan Stanley downgraded both stocks to Equal-Weight and cut their target prices. The brokerage flagged slower loan growth and lowered earnings estimates for FY28 and FY29. The downgrade comes ahead of the proposed PFC-REC merger, with both stocks already under pressure.