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.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment......