Tata Steel share zooms after JP Morgan raises target price; Do you own?
At 9:25 am, Tata Steel stock was trading at ₹152.85 apiece on National Stock Exchange (NSE). Tata Steel shares have gained over 11.23 per cent in over a month.
Tata Steel share price surged as much as 1.54 per cent on Thursday's trading session after brokerage firm JP Morgan raised the target price of the stock, while maintaining ‘overweight’ rating.
At 9:25 am, Tata Steel stock was trading at ₹152.85 apiece on National Stock Exchange (NSE). Tata Steel shares have gained over 11.23 per cent in over a month.
JP Morgan has set the new target price of ₹180 over the next 12 months, which suggests a potential upside of over 20 per cent from current levels.
JPMorgan identifies several positive catalysts expected to drive earnings growth for Tata Steel's European operations. Investor interest in Tata Steel's stock has been increasing, as observed during recent marketing events in Hong Kong and Singapore.
However, JPMorgan believes that some investors have yet to fully recognize the potential positive impact of recent developments, such as Germany's infrastructure fund announcement and the sharp increase in European steel spreads.
JP Morgan positive on Tata Steel share price
European steel spreads have surged 18 per cent quarter-on-quarter and over 60% on a spot basis compared to the Q3 average. JPMorgan suggests that these improvements are not yet factored into consensus estimates and expects Tata Steel's European business to reach EBITDA breakeven by the first quarter of FY26.
In light of favorable market trends, JPMorgan has significantly raised its EBITDA per tonne (EBITDA/t) forecasts for Tata Steel's European operations for FY26 and FY27 to $68 and $70 per tonne, respectively, up from previous estimates of $19 and $27 per tonne. Consequently, JPMorgan has also increased its overall EBITDA projections for FY26 and FY27 by 8-11 per cent.
Tata Steel's market capitalization now stands at approximately ₹2 lakh crore, accounting for 6.9 per cent of the Tata Group's total market capitalization.
Notably, Tata Steel is one of only three Tata Group stocks that have delivered positive returns this year. The other two are Benares Hotels, which has surged by 47 per cent, and Tata Consumer Products, which has gained over 4 per cent during the same period.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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