homemarket Newsstocks NewsBrokerage Radar | JP Morgan initiates coverage on Tata Motors shares with 'overweight' rating
Brokerage Radar | JP Morgan initiates coverage on Tata Motors shares with 'overweight' rating
Tata Motors: JP Morgan has initiated its coverage on shares of Tata Motors with an 'overweight' rating and target price of Rs 630 which implies an upside of around 26 percent from Wednesday's closing price of Rs 498.20.
JP Morgan has initiated coverage on shares of Tata Motors with an 'overweight' rating and a target price of Rs 630 which implies an upside of around 26 percent from Wednesday's closing price of Rs 498.20.
The foreign brokerage house believes that the automaker can achieve its zero net debt target by FY24 against Rs 604 billion currently.
This would be possible due to the mix improvement and right-sizing of costs and investments in Jaguar Land Rover (JLR), market share gains in the Indian Passenger Vehicle (PV) segment and strengthening its commercial vehicle leadership during a cyclical recovery, according to JP Morgan.
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"Our potential bull case fair value of Rs 783 (57 percent upside) is predicated on EV leadership in Indian PVs and meeting medium-term targets at JLR," the brokerage house said in a note to clients.
JP Morgan highlighted that Tata Motors dominates (80 percent share) the nascent EV segment within Indian PVs.
However, JP Morgan has pointed out a few risks:
First Published: Feb 17, 2022 9:07 AM IST
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