Tata Motors hits 52-week high on Deutsche upgrade
Tata Motors shares surged to a 52-week high on Friday after Deutsche Bank upgraded the stock to "buy" from "hold". Deutsche Bank's price target of Rs 400 indicates a 10 per cent upside from current market price of Rs 360.
Tata Motors is a play on global economic recovery, Deutsche Bank said, adding that strong response to new products is the catalyst for the stock.
Tata Motors has grown increasingly reliant on its luxury Jaguar Land Rover unit's overseas sales to offset weak demand at home.
"China and the U.S., which account for 45 per cent of Jaguar LandRover's volumes, have been particularly robust. For JLR, this has echoed in falling incentives, volume momentum and robust margins," Deutsche said in its report dated on Thursday.
However, India's largest automaker by revenue has been struggling in the domestic market, hit by sluggish demand and lack of appeal for its local car portfolio.
Rising fuel prices and interest rates and a slowing economy have hurt India's automobile market, with car sales falling for nine straight months to July.
As of 10.18 a.m. Tata Motors shares traded 4.4 per cent higher at Rs 361.15 on the NSE.
