Reduce Tata Steel, target of Rs 164: Religare

Religare Hichens Harrison Research has recommended a reduce rating on Tata Steel with a target price of Rs 164 in its December 24, 2008 research report. "Sharp deterioration in Corus operating environment as European spot steel prices dropped 50% since July ’08. We anticipate negative EBITDA contribution in H2FY09 with net profit dropping 97% vis-à-vis H1FY09. Increasing uncertainty over steel pricing in Europe and risk of further production cuts at Corus to keep valuations subdued. No upside triggers in the near term. REDUCE, target Rs 164," says Religare Hichens Harrison's research report.

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