Dixon Tech sees a massive downgrade from Morgan Stanley: 3 reasons why

The Dixon Technologies share price has corrected close to 20% so far in 2025 but the worst may not be over yet. Morgan Stanley has downgraded the stock to Underweight from Equal weight and the price target has been set at Rs 11,563 per share. This indicates that the stick could fall as much as 20% from current levels.

According to Morgan Stanley, “higher competition in its core EMS business” after the end of the PLIs and an “earnings growth slowdown between FY27-FY30,” are the key reasons for the downgrade. They believe that though the “component manufacturing is a step in the right direction, but it could be tougher to execute than the core EMS business.”