Tata Stock Jumps 4% To Hit New 52-Week High As Brokerage Raises Target Price

Tata Steel‘s share price jumped back in the green after three days going up close to 4% to hit a new 52-week high of ₹157.40.

What Happened: The massive jump today comes as global brokerage firm JP Morgan maintained its “overweight” rating for the stock raising the target price to ₹170 from ₹150. The revised target indicates an around 13% upside from the stock’s last closing price.

The upgrade was part of the analyst’s larger revision of the metal and mining sector. The brokerage in its note on the sector said that it anticipates the growth in demand will outpace supply creation, leading to favourable margins and market share for low-cost steel producers as the cycle progresses towards its peak in FY26.

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Analysts at the brokerage believe that the ongoing expansions by JSW Steel and Tata Steel will add significant value, generating mid-term internal rates of return (IRRs) exceeding the cost of capital.

As per JPMorgan’s assessment, JSW Steel is the preferred choice. They have upgraded JSW Steel from neutral to overweight and raised the target price from ₹730 to ₹980.

The upgrade comes on the heels of another global brokerage sharing a totally different stance on the sector. CLSA in its note earlier this week downgraded Tata Steel to "sell" from "outperform" and slashed the target price to ₹135 from ₹145. Similarly, it lowered the rating for JSW Steel to "sell" from "underperform" and adjusted the target to ₹730 from ₹810. Shares of the two companies had been under pressure since then.

Price Action: Tata Steel’s share price was up 2.57% to trade at ₹155.50 on Thursday. JSW Steel’s share price was up 2.42% to trade at ₹832.60.

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Posted In: Analyst ColorEquitiesUpgradesPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasJSW SteelTata GroupTata Steel