Tata Technologies' share price extended gains for the third straight session on Wednesday going up over 2% to hit an intraday high of ₹1,115.60.

What Happened: JP Morgan maintained its “underweight” rating for the Tata Group stock with a target price of ₹800. Talking about the company’s joint venture with the BMW Group announced on Tuesday, the analysts said that it was a step in the right direction.

However, there is a need for further clarity on the accounting treatment and margin profile, the analysts added. Additionally, the brokerage said that it is essential for the company to significantly increase its revenues from non-anchor clients to surpass $20 million.

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India remains an attractive location for Engineering, Research, and Development (ER&D) outsourcing, presenting favourable opportunities for Tata Technologies, the brokerage said. The analysts said that they remain underweight as the stock’s current valuations are excessive.

On Tuesday, Citi also maintained its “sell” recommendation on the stock and lowered the price target to ₹920 from ₹1,000. On the other hand, BofA upgraded the stock’s rating to “buy” with a target price of ₹1,250 for the stock.

Price Action: Tata Technologies' share price was up 1.54% to trade at ₹1,108.85 as the markets opened on Wednesday.

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