Bangalore: Angel Securities is bullish on Reliance Industries (RIL) stock and has recommended a buy rating with a target price of 1,260. In a possible move towards reconciliation, the boards of RIL and Anil Dhirubhai Ambani Group (ADAG), on 23 May, signed an agreement cancelling the non-compete arrangement they had entered in January 2006. The two sides had signed a simpler non-compete agreement that will restrain RIL from setting up gas-based power projects until 2022, thus the sector will remain with the ADAG group. The move offers an opportunity to both the groups to enter sectors that had earlier been reserved for one of them until 2016. With the cancellation of the non-compete agreement, issues such as first right of refusal in case of a majority stake sale by companies covered under the agreement ceases to exists. Angel believes that the move is also likely to be positive for RIL as it opens up newer growth avenues to redeploy huge cash flows, which the company is likely to generate. With the recommended target price of 1,260, if the stock is bought at Monday's closing price of 1021.45, the percentage of gain would be 18.93 percent.