Tata Motors CV shares jump 5% after JPMorgan, BofA's bullish calls: Check target prices

Tata Motors share price

The shares of Tata Motors, which now represent the automaker's CV business, rose more than 5 percent on December 18 after JPMorgan and BofA Securities initiated coverage on the stock with bullish ratings.

Tata Motors CV shares rose to Rs 406.80 apiece, the highest level seen by the stock since their debut in November this year, after the demerger from its passenger vehicle business.

JPMorgan on Tata Motors CV:

JPMorgan initiated coverage on the stock with an 'Overweight' rating and a target price of Rs 475 per share, implying an upside potential of nearly 23 percent from the stock’s previous closing price.

The international brokerage said that its positive view was driven by expectations of modest India commercial vehicle (CV) recovery after three years of stagnation, pricing discipline among top players, and value-accretive acquisition of Italy-based Iveco amid bottoming EU truck cycle.

It also noted the attractive valuation at 12x Dec-27E EV/EBITDA for India CV business and 5x EV/EBIT for Iveco. Faster CV cycle recovery and successful Iveco integration could lead to even better upside potential, it added

JPMorgan forecasts FY26-28 EBITDA/EBIT CAGRs of 13 percent/16 percent.

Bank of America on Tata Motors CV:

Bank of America expects the company to see a recovery in its domestic and European businesses, and estimated a CAGR of 15 percent in its EBITDA for FY26-FY28. The brokerage also forecast steady market gains for Tata Motors, supported by margin discipline, lower regulatory risk and a return on capital employed rate of 35 percent.

The bank kept a ‘Buy’ call on the stock, with a target price of Rs 475 per share, same as JPMorgan.

Tata Motors CV share price history:

The shares of Tata Motors’ commercial vehicle business were listed at Rs 335 apiece on the NSE on November 12. This marks a premium of more than 28.5 percent from the discovered price of Rs 260.75.

This comes after the demerger of the automaker’s commercial vehicle business from its passenger vehicle segment. The shares of the passenger vehicle segment were discovered at a price of Rs 400 apiece on NSE on October 14.

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