Shares of Tata Steel jumped in the green on Tuesday as global research firm Jefferies maintained its positive view on the stock.
What Happened: Jefferies maintained its “buy” rating for the stock with a price target of ₹145. The target indicates an around 17% upside from the stock’s last closing price of ₹124.35.
The analysts said that weak macroeconomic conditions in China have impacted the outlook for commodities, so any positive news on that upfront can provide an upside. The analysts also added that the company’s India business could see margin expansion in the December quarter.
Domestic brokerage firm BOB Capital Markets, in a note released last week, also maintained its “buy” rating for the stock with a price target of ₹150. The analysts noted that the profit for the company appears to have reached its low point in the September quarter, with operations in the Netherlands returning to breakeven and an optimistic outlook for India’s demand in H2.
Price Action: Tata Steel’s share price was up 0.92% to trade at ₹125.50 as the markets opened on Tuesday.
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