Prestige Estates Projects Ltd. posted a subdued fourth quarter performance, but brokerages remain optimistic about a strong rebound in financial year 2026, backed by an ambitious pre-sales pipeline and national expansion.Jefferies: Positive on RecoveryJefferies has reaffirmed its ‘Buy’ rating and raised the target price to Rs 1,700, citing credible financial year 2026 pre-sales guidance of Rs 27,000 crore — a 60% year-on-year jump. This is supported by strong first-quarter momentum in this fiscal, with over 45% of the full-year guidance already met through large launches in Mumbai and Bangalore.Fourth quarter pre-sales rose 48% year-on-year to Rs 6,960 crore, but financial year 2025 as a whole saw a 19% drop to Rs 17,000 crore, as several projects launched late in the year. Ebitda fell 35% year-on-year to Rs 540 crore, and net profit dropped 41% to Rs 250 crore, missing estimates.However, Jefferies believes gearing remains manageable at 0.42x and expects a turnaround in collections and profitability in financial year 2026, helped by improved operating leverage and steady progress on capex plans. An IPO of the hospitality business could also unlock value.Prestige Group To Launch Housing Projects Worth Rs 42,000 Crore In FY26Morgan Stanley: Near-Term Weakness, Long-Term ValueMorgan Stanley struck a more cautious tone on fourth quarter results, citing a 19% year-on-year fall in pre-sales, a 9% drop in collections, and weaker margins at 19% versus 34% in the quarter ended March of the financial year 2024. Financial year 2025 revenue was down 7% year-on-year, and net profit fell 66% to Rs 470 crore.Nonetheless, the firm maintained an ‘Overweight’ rating with a target of Rs 1,800, citing favourable valuations and strong financial year 2026 guidance. The planned Rs 450 crore GDV commercial JV in Mumbai with Valor Group and inventory of Rs 20,100 lend confidence to growth targets.Morgan Stanley expects Prestige Estates’s improved mix and national footprint to help regain momentum in fiscal 2026, despite weak fourth quarter execution.Real Estate Riches: Your Guide To REITS And Hassle-Free Investing. Read more on Earnings by NDTV Profit.