Tata Steel shares rose 2 percent on March 13 to become one of the top gainers in the Nifty 50 after JPMorgan raised its target price for the stock.
International brokerage JPMorgan raised its price target for the stock to Rs 180, implying an upside potential of about 20 percent from Wednesday’s closing price. Further, the firm retained its ‘highweight’ call on the stock.
At 10.35 am, Tata Steel shares were trading at Rs 151.88 on the NSE.
JP Morgan sees several positive catalysts supporting earnings growth for Tata Steel’s European business, with recent marketing events in Hong Kong and Singapore driving investor interest in the stock.
However, the brokerage believes that some investors have not yet fully recognised the potential upside from key developments including the announcement of Germany’s infrastructure fund and a sharp rise in European steel spreads.
European steel spreads have increased by 18 percent quarter-on-quarter and more than 60 percent compared to the Q3 average on a spot basis.
JPMorgan suggests that these gains are not yet reflected in consensus estimates and expects Tata Steel’s European business to achieve EBITDA breakeven by Q1 FY26.
In response to these favourable trends, the brokerage has raised its EBITDA per tonne (EBITDA/t) estimates for Tata Steel’s European operations in FY26-27 to $68 and $70 per ton, respectively – significantly higher than its previous forecasts of $19 and $27 per ton. As a result, JPMorgan has raised its overall EBITDA estimates for FY26-27 by 8-11 percent.
Meanwhile, Tata Steel is also one of only three Tata Group stocks to have delivered positive returns this year with its 10 percent upmove.
