Morgan Stanley has maintained an Equal-weight (EW) rating on Tata Motors, setting a target price of ₹853 per share. The brokerage noted that the company’s Q3 FY25 performance fell short of expectations, with weaker-than-expected numbers across key segments.
The firm highlighted that Jaguar Land Rover (JLR) has retained its FY25 EBIT margin guidance, but there has been a slight downgrade in revenue and return on capital employed (ROCE) projections. This indicates potential challenges in sustaining growth momentum amid a dynamic market environment.
Morgan Stanley also pointed out that JLR will reassess its FY26 guidance after the Q4 FY25 earnings, suggesting that future outlook adjustments could depend on upcoming performance metrics.
At the last traded price of ₹754.80, Tata Motors’ stock remains below Morgan Stanley’s target price, reflecting market concerns over global demand trends, competitive pressures in the EV space, and macroeconomic uncertainties.
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