Morgan Stanley, Citi positive on Tata Steel

Wed Jan 30, 2013 2:14pm IST

A labourer works at a Tata steel iron godown in Chandigarh November 9, 2012. REUTERS/Ajay Verma/Files

A labourer works at a Tata steel iron godown in Chandigarh November 9, 2012.

Credit: Reuters/Ajay Verma/Files

Related Topics

Stocks

   

Reuters Market Eye - Citigroup says oversupply in China and Europe leaves little room for upside in steel prices, after global re-stocking sparked a rally over the past three months.

However, the bank retains a 'buy' rating on Tata Steel Ltd(TISC.NS) and raises its target price to 508 rupees from 430 rupees, citing "inexpensive" valuations, a bottoming out of earnings in Tata Steel Europe and more resilient volumes than other Indian steel makers.

Separately, Morgan Stanley adds Tata Steel to its Asia-Pacific excluding Japan as well as Emerging Markets focus lists, saying the company offers "a good restructuring story" due to rising capacity, improved sales volumes and the commissioning of a new coke oven battery.

Citigroup also downgrades Steel Authority of India Ltd (SAIL.NS) to 'sell' from 'neutral' after the stock gained over 12 percent in past three months, already discounting expectations of margin improvement in fiscal 2014.

Tata Steel shares gain 2 percent, while SAIL shares are up 0.1 percent at 2.13 p.m.

(Reporting by Manoj Dharra)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

Sensex, Nifty rise to second consecutive record high

Sensex, Nifty rise to second consecutive record high

The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.52 percent to an all-time high of 27,762.13. The broader Nifty gained as much as 1.49 percent to a record of 8,291.65.  Full Article 

REUTERS SHOWCASE

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage