Tata Motors Shares Get a Downgrade From UBS; Analysts Cite 3 Risk For the Tata Stock
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Tata Motors Share Price: Shares of Tata Motors Ltd has been downgraded by the brokerage firm UBS from neutral to sell. However, it has raised its twelve-month target price for the company’s shares to Rs 450 from Rs 320 earlier. Meanwhile, Tata Motors’ management remains optimistic about the demand situation for its luxury vehicles, with a pipeline of electrified models on the horizon. UBS conducted an extensive analysis of the global premium electric vehicle (EV) industry with a focus on Jaguar Land Rover (JLR), which constitutes over two-thirds of its sales and EBITDA in fiscal year 2023. The findings reveal that the market is underestimating the risks and vulnerabilities faced by JLR due to the rapid electrification of premium cars. Additionally, Tata’s domestic market share in the automotive industry is nearing its peak due to intensifying competition. UBS said investors are likely overlooking the significant shift in the global premium car market caused by electrificat...