Shares of Tata Technologies jumped more than 4% in early trade on Wednesday, coming into sharp focus after global brokerage JPMorgan upgraded its rating on the stock ahead of the December quarter earnings season. As of 9:41 AM, the shares were trading 4.60% higher at Rs 679.00.
JPMorgan upgraded Tata Technologies from Underweight to Neutral and sharply raised its price target to ₹710 from the earlier ₹570. The brokerage cited easing global trade uncertainties and a visible improvement in demand conditions within the automotive engineering research and development (ER&D) space as key reasons behind the upgrade.
According to the brokerage, the auto ER&D sector has witnessed a notable pickup in demand over the past three months. This improvement has largely been driven by the resolution of major global trade deals and reduced tariff-related concerns, which had earlier weighed on client decision-making and project timelines.
JPMorgan highlighted that global original equipment manufacturers are gradually restarting R&D programmes that were previously put on hold. This resumption is expected to support order inflows and execution momentum for Tata Technologies, given its strong positioning in automotive engineering services.
The brokerage further noted that ongoing R&D investments are currently being driven by hybrid vehicle development, autonomous driving technologies, and connected car solutions. However, the electric vehicle segment continues to remain subdued, with no meaningful recovery visible so far.
On the geographic front, the recovery in automotive ER&D demand is uneven. Europe is leading the resurgence, followed by the Asia-Pacific region, while the United States continues to lag. JPMorgan believes that any meaningful recovery in the US market is still at least two quarters away, making companies with strong European exposure, such as Tata Technologies, relatively better placed in the near term.
Looking ahead, JPMorgan expects revenue growth for Tata Technologies to accelerate toward the latter part of FY26 and into early FY27, supported by the ramp-up of deals secured during 2025.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.