Morgan Stanley has maintained its ‘Underweight’ rating on Tata Elxsi and lowered the target price to ₹4,660 following a weak Q4 performance that missed even the already-muted expectations.
The brokerage highlighted that while the automotive segment could witness some ramp-up in deals, the media vertical continues to appear soft despite recent wins. Moreover, the overall macroeconomic environment remains unsupportive for the broader industry.
Morgan Stanley believes that with weak exit revenue trends, the earnings downgrade cycle may not be over yet. In this backdrop, and given the stock’s still-elevated valuations, the brokerage cautioned that Tata Elxsi may continue to underperform in the near to medium term.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
