Mumbai: Goldman Sachs has cut its target price for Tata Motors to Rs774 from Rs1,073 citing lower revenue growth outlook amid high interest rates and global uncertainties.
“We are revising our fiscal year 2012 to 2014 earnings per share (EPS) estimates on Tata Motors by 12-14% mainly on lower revenue assumptions,” the Wall Street bank said in a note on Friday.
It expects revenues to be 3-5% lower mainly on lower auto demand forecast for United States and Europe and weaker year-to-date volume growth performance of the domestic passenger car and Jaguar Land Rover business.
It has maintained its neutral rating on the stock, adding that it did not view the recent correction as an attractive opportunity to buy the stock as valuation appears in line with global auto peers on relative returns based analysis.
Shares in the company ended at Rs712.35, down 5.28% in a weak Mumbai stock market, which ended 1.99% lower at 16,141.67.