Tata Motors’ share price jumped back in the green on Thursday after a two-session losing streak.

What Happened: The surge today comes as Morgan Stanley upgraded its rating on the stock from “neutral” to “buy”. The research firm also raised the price target from ₹680 to ₹925. The revised target indicates an 18% upside from the stock’s last closing price of ₹781.45.

The firm said that the upgrade was driven by better-than-expected margin and free cash flow delivery at the company’s subsidiary Jaguar Land Rover. The analysts added that they see margins to improve further as several luxury original equipment manufacturers prefer profitability over volumes.

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Talking about the India business, the analysts said that despite the new launches from competitors the company’s passenger vehicle volumes remain resilient. In December, the company achieved a total sales figure of 77,855 units, marking an increase from the 74,356 units sold in the same period the previous year.

The auto giant reported a notable 9% growth in its total passenger vehicle sales. Passenger vehicle sales reached 43,470 units in December 2023, compared to 40,043 units in the corresponding month of the previous year.

Price Action: Tata Motors’ share price was up 1.35% to trade at ₹792 as the markets opened on Thursday.

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