Tata Motors Share Price Hits Over 10–Month Low As Analysts Cut Target Price After Weak Q2

Tata Motors Ltd.'s share price hit the lowest level in over 10 months after analysts trimmed the target price subsequent to the company reporting a decline in net profit, against an expectation of a rise. Emkay Global Research, UBS Global Research, and Nuvama cut the target price as they factored in the automobile manufacturer's weak performance.

Jaguar Land Rover's 11% volume decline led to a 50% drop in Tata Motors' Ebitda, UBS Global Research said. "This (July–September) quarter's performance backs our caution and raises significant risk to optimistic estimates on the street."

UBS Global Research has a 'sell' rating on the stock.

The brokerage cut the target price to Rs 780 apiece from Rs 825 apiece, earlier. The target price implied a 3% downside from Friday's closing price.

Emkay Global Research cut the target price to Rs 1,000 compared to Rs 1,175 earlier, which implied an upside of 24% from Friday's closing price. The brokerage has a 'buy' rating on the stock.

Similarly, Nuvama cut the target price to Rs 767 apiece from Rs 1,010 apiece. The target price implied a 4% downside from Friday's close.