Tata Stock Jumps After Global Brokerage Hikes Target Price
Tata Steel’s share price extended gains to the third straight day on Wednesday going up over 1.5% to hit an intraday high of ₹169.20 — a smidge below its all-time high of ₹169.80.
What Happened: Shares of the Tata Group company were upbeat as global research firm Jefferies maintained its positive outlook. The analysts at Jefferies maintained their “buy” rating for the steel giant raising the price target to ₹200 from ₹165. The revised target indicates an around 20% upside from the stock’s last closing price of ₹166.
The views were shared in the research firm’s latest note on the metals and mining sector. As per the analysts, the outlook for the sector is positive due to the rise in manufacturing activities reported by both China and the US. As major consumers of metal, an increase in manufacturing activity in these countries indicates a heightened demand for metal products.
Apart from Tata Steel (NS:TISC), Jefferies also has a “buy” rating on Hindalco (NS:HALC) with a price target of ₹700. Coal India (NS:COAL) also has been assigned a “buy” rating with a price target of ₹520. The positive commentary has driven the Nifty realty index up over 1%.
Price Action: Tata Steel’s share price was up 1.11% to trade at ₹167.85 in early trade on Wednesday.
Yes, you’re right. Tata Steel’s stock price did jump recently after a global brokerage firm increased its target price for the stock. Here’s a quick rundown of what happened:
- Tata Steel’s share price increased due to a positive outlook from a global brokerage firm, Jefferies [1].
- Jefferies maintained a “buy” rating for Tata Steel and raised the target price to ₹200 from ₹165 [1].
- This increase in target price indicates a potential 20% upside for the stock [1].
- The positive outlook is likely due to factors like increased manufacturing activity leading to higher demand for steel products [1].
This is just a recent example, and it’s important to note that stock prices can fluctuate based on various market factors.