On Wednesday, Goldman Sachs maintained a Neutral rating with an INR1,040.00 price target for Tata Motors (NYSE:TTM) Ltd. (TTMT:IN) (NYSE: TTM), following the company's Investor Day presentations held the day before.
Tata Motors shared its medium-term targets for various business segments, including domestic passenger vehicles (PV), electric vehicles (EV), and commercial vehicles (CV). The automaker also provided updates on its progress towards local lithium-ion cell manufacturing and its sustainability goals for 2030.
During the Investor Day, Tata Motors outlined its ambition for the EV business to reach EBITDA breakeven by the fiscal year 2026, an improvement from the -7% EBITDA margin expected in the fiscal year 2024. The company also indicated a shift in strategy for its PV business, showing a reduced inclination to invest in hybrid powertrains. The CV business, on the other hand, reported a robust 36% return on capital employed (ROCE) and anticipates less volatile growth in the current cycle.
A significant corporate development discussed was the demerger process, which Tata Motors expects to be closer to completion within the next 12 months. Additionally, the company is on track to begin in-house manufacturing of lithium-ion cells by 2026, marking a critical step towards self-reliance in EV component production.
Goldman Sachs' stance on Tata Motors remains unchanged, with a Neutral rating and a 12-month price target of INR1,040. This outlook comes after analysts visited Tata Motors' recently acquired manufacturing facility that currently produces both the Nexon internal combustion engine (ICE) model and the Nexon EV.
In other recent news, Tata Motors has been the focus of several major financial firms. Jefferies reaffirmed its 'Buy' rating on the company's stock, reflecting confidence in Tata Motors' strategic initiatives and potential for growth. The company has outlined plans to increase its market share in passenger vehicles and commercial vehicles, with ambitious targets set for the fiscal years ahead.
JPMorgan also reiterated its 'Overweight' rating on Tata Motors, highlighting the company's strategic plans revealed during its India Investor Day. The firm's analyst noted Tata Motors' commitment to disciplined capital allocation and rigorous execution, with focus on both traditional automotive and electric vehicle markets.
Goldman Sachs increased its price target for Tata Motors while maintaining a 'Buy' rating, in anticipation of the company's fourth-quarter earnings for fiscal year 2024. The revised price target reflects several factors, including product mix updates, pricing strategies, and currency fluctuations.
CLSA maintained an 'Outperform' rating for Tata Motors, following the company's investor day. This affirmation underscores the company's potential for growth and operational improvement through its strategic initiatives.
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