Tata Technologies‘ share price slumped in the red after two days as global broking firm Citi maintained its cautious stance on the Tata Group company.

What Happened: The brokerage maintained its “sell” rating on Tata Technologies’ shares but hiked the target price from ₹935 to ₹945. The revised target still indicated an around 15% downside from the stock’s last closing price of ₹1,112.65.

This revision is based on slightly higher estimates for FY25-27 and a positive outlook, according to the firm. It also raised the stock’s target multiple to 42x from 40x, reflecting the rerating in the Indian market and sector.

While acknowledging the company’s strong growth potential, driven by robust tech spending in the automotive vertical, Citi also took into account uncertainties surrounding VinFast revenues and client concentration risks.

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Earlier in the month, ICICI Securities gave a “buy” call with a target price of ₹1,290. This followed an analyst meet, where Tata Technologies showcased its capabilities in converting internal combustion engine vehicles to electric vehicles, software-defined vehicles, smart manufacturing, plant engineering, robotics, AI implementation and battery solutions.

Last month, the company had ended its memorandum of agreement (MoA) with the Chhattisgarh Government. The termination of the MoA marked the end of a project where Tata Technologies was the primary industry partner for enhancing 36 ITIs as Center of Excellence (CoE) in Chhattisgarh.

Price Action: Tata Tech’s share price was down 1.14% to trade at ₹1,100 as the markets opened on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.