Angel Broking has upgraded its rating on Tata Steel from neutral to buy with a target price of Rs 875 in its June 27, 2008 research report. "At the CMP of Rs 727, Tata Steel is trading at a P/E of 7.6x and EV/EBIDTA of 4.8x FY2010E consolidated Earnings. We believe that the stock is quoting at attractive valuations considering the better-than-expected performance by Corus, higher synergistic benefits (USD 600 million, earlier USD 450 million), strong prices in the European markets, diversified markets and scale of operations."

"However, the biggest risk to our assumptions are no change in the government’s restrictive attitude towards steel prices and a greater-than-expected slowdown in global economies affecting the demand for steel and consequently Corus’ ability to pass on additional costs to consumers in the medium term. We upgrade the stock from Neutral to Buy, with a Target Price of Rs 875," says Angel's research report.

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