Buy Tata Motors, likely to see upgrade in near-term: Jefferies
For those of you interested in stocks, I ran across this article this morning and thought it was interesting..
Brokerage Jefferies has rated Tata Motors a 'buy' and increased its target price to Rs 244 from Rs 206 as it sees 'meaningful upside' in the stock, despite the run-up in the last four months.
"We are encouraged by the strong traction in Evoque volumes and continued buoyancy in China, which leads us to raise our forecast for JLR. Currency could be an incremental positive in the near term," said Jefferies, in a note to clients on Monday.
At 12:55 PM, Tata Motors shares were down 0.5% at 207.85. BSE's auto index was down 0.2%.
"Given the strong traction, we raise our volume forecast for Evoque from 20k to 42k in FY12E and from 40k to 75k in FY13E (management is confident of a steady state run-rate of 80-100k vehicles p.a.)," said Jefferies.
"There are some signs of revival in this segment - retail volumes for Nano are now close to 10,000/month and management expects wholesales to improve going forward," it said.
01-16-2012 09:41 AM