13 Mar , 2025 By : Debdeep Gupta
Shares of Tata Steel rose 2 percent to emerge as one of the top gainers on the Nifty 50 on March 13, buoyed by JPMorgan's upward revision in its target price for the stock.
International brokerage JPMorgan raised its price target for the stock to Rs 180, reflecting an upside potential of around 20 percent from Wednesday's closing price. That aside, the firm retained its 'overweight' call on the stock.
At 10.35 am, shares of Tata Steel were trading at Rs 151.88 on the NSE.
JPMorgan sees multiple positive catalysts supporting earnings growth for Tata Steel’s European business, with investor interest in the stock increasing during recent marketing events in Hong Kong and Singapore. However, the brokerage believes that some investors have yet to fully recognize the potential upside from key developments, including Germany’s infrastructure fund announcement and the sharp rise in European steel spreads.
European steel spreads have surged 18 percent quarter-on-quarter and over 60 percent on a spot basis compared to the Q3 average. JPMorgan suggests that these gains are not yet reflected in consensus estimates and expects Tata Steel’s European business to achieve EBITDA breakeven by the first quarter of FY26.
In response to these favorable trends, the brokerage has raised its EBITDA per tonne (EBITDA/t) estimates for Tata Steel’s European operations in FY26-27 to $68 and $70 per tonne, respectively—significantly higher than its previous forecasts of $19 and $27 per tonne. As a result, JPMorgan has upgraded its overall EBITDA projections for FY26-27 by 8-11 percent.
Meanwhile, Tata Steel is also one of only three Tata Group stocks to have delivered positive returns this year with its 10 percent upmove.
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