Tata Motors gets JP Morgan's vote of confidence; shares up 2%

Tata Motors

18/12/2025 04:52

** Shares of Tata Motors TATM.NS up 2% to 394.8 rupees

** JP Morgan initiates coverage on stock with "overweight" rating, PT of 475 rupees - about 23% upside from last close

** JP Morgan says positive view driven by expectations of modest India commercial vehicle (CV) recovery after three years of stagnation, pricing discipline among top players, and value-accretive Iveco acquisition amid bottoming EU truck cycle

** Brokerage notes attractive valuation at 12x Dec-27E EV/EBITDA for India CV business and 5x EV/EBIT for Iveco

** Faster CV cycle recovery and successful Iveco integration could be upside risks to PT – JPM

** JPM forecasts FY26-28 EBITDA/EBIT CAGRs of 13%/16%, leading to FCF generation of 162 billion Indian rupeesoka ($1.79 billion)

($1 = 90.3900 Indian rupees)

 (Reporting by Brijesh Patel in Bengaluru)

 ((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))