JP Morgan sets 'overweight' target on Tata Motors, stock seen to rise over 30% ahead

18 Feb 2022 , 03:32 PM

Tata Motors corrected after making brief gains earlier this week on Friday. Tata Motors has been in focus after reports stated that JP Morgan has initiated an ‘overweight’ rating on the company.

At around 3.18 pm, Tata Motors was trading at Rs493.35 per piece down by 1.3% on BSE. The stock has touched an intraday high and low of Rs502.75 per piece and Rs491.50 per piece respectively.

The American investment banker outlined that Tata Motors can achieve its zero net debt target after taking note that the company has improved its product mix, has the right-sizing of cost and required investment in luxury car arm, Jaguar Land Rover.

Furthermore, JP Morgan has pointed out that the Tata Group automobile flagship is strengthening its commercial vehicle leadership during a cyclical recovery and not just that it has emerged to bag leadership in the electric */vehicles market in Indian personal vehicles. Also, the company is on track for meeting its medium-term targets at JLR.

JP Morgan has given a target of Rs660 per share on Tata Motors which reflects an upside of over 32% from the previous day closing price of Rs500 per share on BSE.