Tata Technologies‘ share price was upbeat on Monday as the company got a rating upgrade from a global brokerage firm.

What Happened: Analysts at BofA upgraded the stock’s rating from “neutral” to “buy” with a price target of ₹1,250. The target implies an around 20% upside from the stock’s last closing price of ₹1,020.65. The brokerage had maintained its “neutral” rating for the stock when the company posted its results for the December quarter.

The analysts forecast that the Tata Group company will experience growth in FY25 primarily driven by its aerospace segment, in addition to its automotive division. The shift towards hybrid vehicles from electric vehicles (EVs) is anticipated to have net neutral implications.

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Despite some concerns regarding client concentration, there’s an expectation that this issue will turn in favour of the company, the analysts added. Additionally, the company could benefit from secular tailwinds in Engineering, Research, and Development (ER&D), further supporting its prospects for FY25.

Ever since its bumper listing, the stock has remained in the headlines. It, however, has seen some correction since then but remains much ahead of its IPO issue price of ₹500.

Price Action: Tata Technologies' share price was up 1.90% to trade at ₹1,040 as the markets opened on Monday.

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