July 2, 2018 / 4:04 AM / 10 months ago

BUZZ-India's Tata Steel rises after JV deal with Thyssenkrupp

** Tata Steel Ltd’s shares rise as much as 3.3 pct to 586.50 rupees, their highest since June 12

** Co and Germany’s Thyssenkrupp signed a final agreement on Saturday to establish a long-expected steel JV, the European steel industry’s biggest shake-up in more than a decade

** Completion of the deal expected either in Q4 or in Q1 2019, depending on antitrust talks with the European Commission

** Macquarie analysts write the “deal assures de-consolidation of the EU business and deleveraging of Tata Steel’s balance sheet”, continue to remain ‘restricted’ stock

** Kotak Institutional Equities analysts say “save for lower equity, we believe the JV will be positive given the company’s increased leverage and synergy benefits,”; cuts TP to 700 rupees from 710 rupees but maintain ‘add’ rating

** 23 of 27 brokerages rate the stock “buy” or higher, three “hold” and one “sell”; their median PT is 794.50 rupees

** Nearly 2.1 mln shares change hands as of 0357 GMT, compared with the 30-day moving avg of 7.8 mln shares

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