India's Ola Electric surges after Citi starts coverage with 'buy'
** Shares of electric 2-wheeler maker Ola Electric Mobility OLAE.NS rise an exchange-allowed maximum of 20% to 88.10 rupees
** Citi Research initiates coverage of stock with 'buy' rating and TP of 90 rupees, which is 22.6% premium to Tuesday's close
** Citi expects OLAE's profitability to improve as capacity utilization increases; currently, capacity utilization at 40%
** If the product offering is attractive, service issue will subside over medium term as back-end supply chain improves - Citi
** Brokerage believes India's larger EV OEMs could dominate market and remain profitable with optimal cost base and consolidation of industry
** Lower 2-wheeler EV sales, elevated competition, negative perception of product and service quality, and sustained losses are among key risks for OLAE - Citi
Reporting by Vijay Malkar
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