Why This Tata Stock Is Slumping Today

Titan‘s share price four-session gaining streak was halted on Monday as Morgan Stanley downgraded the stock’s rating.

What Happened: Global research firm Morgan Stanley downgraded the stock’s rating to “equalweight” with a price target of ₹3,207 – indicating a mere 2% upside from the stock’s last closing price of ₹3,144.

The firm in its note said the company’s outperformance might go through a temporary pause. The firm also added that the company’s jewellery business might see some moderation as demand gets impacted due to an increase in gold prices. However, the analysts stated that it continues to view the firm positively in the longer run.

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The downgrade comes just days after the omnichannel retailer posted its operation updates for the quarter ended June. In a regulatory filing, the Tata Group company reported a significant revenue growth of 20% year-over-year during the April-June period. The company highlighted that all its key consumer businesses demonstrated impressive double-digit growth throughout the quarter.

Price Action: Titan’s share price was down 2.07% to trade at ₹3,078.85 shortly after the markets opened on Monday.

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Posted In: DowngradesPrice TargetAnalyst RatingsTata GroupTitan