Tata Motors Share Price: Brokerage firm JP Morgan gave a shock to Tata Motors, know what happened?

News Topical, Digital Desk : Tata Motors Share Price: Brokerage firm JP Morgan has downgraded Tata Motors Ltd.'s stock rating from "overweight" to "neutral". The decision was taken on Friday, June 6, when the firm pointed to new emerging risks for the company. Along with this, the target price of Tata Motors has also been reduced from ₹ 1,250 to ₹ 740. This new target is close to the level at which the stock closed at ₹ 710 on Thursday.

JP Morgan's report said that some new adverse factors have emerged for Tata Motors, including tariff risk, Jaguar Land Rover's (JLR) old portfolio line-up, and weak industry growth in India as well as market share challenges in the commercial and passenger vehicle segments. The report also said that the financial year 2026 may prove to be difficult for Tata Motors and the company may again go into a net debt situation. 

What is the future expectation? JP Morgan expects that the company's situation may improve in the financial years 2027 and 2028. During this period, the gradual pass-through of tariffs, electric vehicle launches in JLR and recovery in the commercial vehicle segment in India can strengthen the balance sheet. Apart from this, stability in Tata Motors' market share in India and margin improvement in passenger vehicles will also help in the recovery of the balance sheet. Tata Motors investors are now waiting for the management's guidance during the Investor Days to be held in India on June 9 and in JLR on June 16. Of the 35 analysts covering Tata Motors, 18 have a "Buy", 11 have a "Hold" and 6 have a "Sell" rating. Tata Motors stock closed marginally unchanged at ₹ 710 on Thursday. The stock has recovered well from its 52-week low of ₹ 535.

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