Tata Motors‘ share price was upbeat on Friday morning as the global brokerage firm remained firmly bullish on the auto major.

What Happened: JP Morgan reiterated its “overweight” rating on Tata Motors with a target price of ₹1250. Despite acknowledging profit warnings from Tata’s competitors, the brokerage maintains that the underlying trends are stable.

It voiced concerns regarding the volatility of Indian trends and the influence of China trends on the stock’s performance. The analysts anticipate a potential re-rating of the stock over the medium term as the company’s balance sheet strengthens and earnings per share volatility diminishes.

BofA Securities also retained the “Buy” rating on Tata Motors with a target price of ₹1280. The target indicates an around 30% upside from the stock’s last closing price of ₹986.15. The brokerage said that the increase in U.S. Jaguar Land Rover incentives is not alarming and does not foresee a disproportionate impact on Jaguar Land Rover volumes or margins.

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The brokerage remains optimistic about the commercial vehicle cycle, model action in passenger vehicles and the potential benefits for Jaguar Land Rover from the mix and average selling price tailwinds. It also highlighted the ongoing balance sheet deleveraging and corporate restructuring (demerger) of Tata Motors.

This positive outlook comes as Tata Motors’ shares have been experiencing a downward spiral. Major triggers for the slump were the company’s August sales missing analysts’ estimates and a bearish call on the stock by UBS.

UBS maintained a “sell” rating on Tata Motors due to concerns around Jaguar Land Rover (JLR), leading to a further decline in the share price.

Price Action: Tata Motors’ share price was up 0.27% to trade at ₹988.80 as the markets opened on Friday.

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