Shares of Tata Steel witnessed a 2% rise [1] on Wednesday after global financial services firm JPMorgan revised its price target for the stock, forecasting a potential 20% upside. The brokerage reaffirmed its “overweight” rating, highlighting the company’s improved earnings outlook, particularly in its European operations, as a key driver for optimism.
The stock gained 0.53% to Rs 151.10 on BSE today. The firm’s market cap stood at Rs 1.88 lakh crore. Total 9.35 lakh shares changed hands amounting to a turnover of Rs 14.23 crore on BSE.
The Tata Group stock has a one-year beta of 1.4, signaling high volatility during the period. The stock is trading higher than the 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.
According to JPMorgan, favorable market conditions and strong operational performance are expected to bolster Tata Steel’s growth trajectory. Investors have responded positively to the assessment, further strengthening the company’s position in the stock market.
European steel spreads have risen 18% quarter-on-quarter and over 60% on a spot basis compared to the Q3 average. The global brokerage is of the opinion that these improvements are not yet factored into consensus estimates and sees Tata Steel’s European business to reach EBITDA breakeven by Q1 of FY26.
This upward revision comes as a boost to Tata Steel’s prospects amidst a competitive global steel industry. Analysts will be closely watching for further developments as the company continues to capitalize on industry trends and bolster its financial performance.
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[1] Tata Steel shares rise 2% after JPMorgan lifts price target, forecasts 20% upside https://www.moneycontrol.com/news/business/markets/tata-steel-shares-rise-2-after-jpmorgan-lifts-price-target-forecasts-20-upside-12963689.html