Morgan Stanley Hikes MCX Target by 66%, Sees Further Upside Potential

• Morgan Stanley upgraded MCX to 'Equalweight' and sharply raised its target price by 66% to ₹11,135 from ₹6,710.
• The new target implies a modest 2% upside from current market levels despite the significant hike.
• Upgrade is driven by a surge in MCX's average daily transaction revenue, fueled by heightened commodity price action.
• Brokerage materially raised earnings estimates for FY26 (15%), FY27 (20%), and FY28 (24%).
• Sustained high transaction revenue could lead to a more attractive valuation of 35 times earnings for FY27-FY28.

Why It Matters: Morgan Stanley's bullish outlook on MCX, driven by revenue surge, suggests potential for future growth.