Investec starts 'Long Fast' report on Tata Steel, sees upside from potential Tata Sons listing
BUZZ-Investec starts 'Long Fast' report on Tata Steel, sees upside from potential Tata Sons listing ** Investec initiated a "Long Fast" on Tata Steel TISC.NS, while retaining its "Hold" rating and PT of 220 rupees
** Long Fast is Investec's research report format with a shorter term investment thesis (three to six months) than its traditional 12-month framework
** A potential listing of Tata Sons TATO.NS, the holding company for Tata group companies, could add about 19 rupees per Tata Steel share, after applying a 20% holding-company discount, Investec estimates
** On Thursday, TATO board said it would move towards complying with Reserve Bank of India rules that could require the holding company to list
** Regulatory changes could support Tata Steel Netherlands with tariff quotas and higher off-quota duties helping European steel pricing and potentially improving spreads
** Investec expects TISC's domestic outlook to improve in the second half of FY27, saying the moderation in Q2 spreads is largely priced in and spreads could rise modestly by about 2,000 rupees per tonne Q/Q
** On the day, TISC down 0.2%; YTD up ~3%
(Reporting by Anuran Sadhu in Bengaluru)
((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))