Investors in Tata Motors' commercial vehicle business are cheering as the stock rose over 5% on December 18, driven by bullish ratings from top brokers JPMorgan and Bank of America Securities. But what's behind this sudden surge, and is it a good time to invest in the stock?
JPMorgan initiated coverage on the stock with an 'Overweight' rating and a target price of Rs 475 per share, implying an upside potential of nearly 23% from the stock’s previous closing price. Bank of America also gave the stock a 'Buy' call with the same target price.
JPMorgan forecasts FY26-28 EBITDA/EBIT CAGRs of 13%/16%, while Bank of America expects a CAGR of 15% in EBITDA for FY26-FY28. Both brokers believe that a faster CV cycle recovery and successful Iveco integration could lead to even better upside potential.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider multiple viewpoints before making any investment decisions. The stock market can be unpredictable, and it's crucial to stay informed and up-to-date with the latest developments.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram