“We’re probably in the last leg of the downcycle. For investors with a two to three year view, a 40-50% upside looks quite likely,” said Amit Anwani, vice president, research, at PL Capital. “We seem close to an inflection point, and the trajectory should start improving over the next few months as orders begin to materialise,” he said. Anwani added, however, that he expects supply-side issues to persist for another three to four months. Until the first batch of deliveries comes through, investors should keep a close eye on execution timelines, he said.
