BofA-ML raises target price for Tata Motors by 26% to Rs 360
Bank of America Merrill Lynch raised its target price for Tata Motors stock by 26 per cent to Rs 360, and upgraded the stock from `neutral' to `buy', thanks to the strong performance by the auto giant's luxury brand Jaguar Land Rover (JLR) in 2012.
Among the 30-share SENSEX stocks, Tata Motors was the best performer in 2012. According to the recently released figures, Tata Motors sold a total of 47,515 commercial vehicles, 37,649 light commercial vehicles and 9,866 medium & heavy commercial vehicles in December.
In November, JLR's global sales increased 14 per cent year-on-year to 29,893 units.
The company's November sales increased in almost every major market, with sales growing in China, Asia-pacific, Europe and the UK by 43 per cent, 26 per cent, 12 per cent and 15 per cent, respectively.
Bank of America Merrill Lynch expects a hike in profit forecasts by 15 per cent to 25 per cent on better sales mix.
Almost all major car manufacturers in India either reported a decline or a marginal hike in December car sales, in spite of offering heavy year-end discounts. Toyota Kirloskar Motors, Hyundai Motors and General Motors reported a drop in sales, mainly due to high interest rates, spiraling inflation and soaring fuel prices.