Suspense crime, Digital Desk : Shares of the Multi Commodity Exchange of India (MCX) soared by over 4% to reach a new 52-week high, following a major vote of confidence from the global investment bank UBS.

In a significant report, UBS upgraded MCX stock from a “Neutral” rating to a “Buy,” signaling to its clients that it believes the company is a strong investment. More strikingly, UBS nearly doubled its price target for the stock, raising its forecast from ₹2,200 to an ambitious ₹4,100 per share. Such a massive increase in a target price is a powerful bullish signal that has captured the market’s attention.

So, what’s behind this sudden optimism? According to UBS, several key factors are aligning perfectly for MCX:

1. A Major Tech Overhaul Pays Off: MCX recently completed a complex and risky transition to a new technology platform. This move has proven to be successful and stable, removing a major uncertainty that was hanging over the company. With the new tech in place, the exchange is now on a solid footing for future growth.

2. Potential to Earn More on Trades: UBS anticipates that MCX will soon increase the transaction fees (tariffs) it charges for options trading. This is a direct way for the company to boost its revenue. The report projects a potential fee hike of 30-35%.

3. Explosive Profit Growth Expected: The combination of a stable platform and higher fees is expected to lead to a dramatic increase in the company’s profitability. UBS predicts that MCX’s earnings could grow at a stunning rate over the next two years, making it a highly attractive prospect for investors.

This strong endorsement from a major global firm has significantly boosted investor confidence, suggesting that MCX is well-positioned for a period of substantial growth after successfully navigating its technological transformation.

Read More: MCX Stock Hits New High After Major Thumbs-Up from Global Investment Bank