Tata Motors CV Share Price In Focus As Two Brokerages Initiate Buy Calls — Check Target Price

Shares of Tata Motors Commercial Vehicles Ltd. will be worth keeping an eye on, heading into Thursday's trade, after two big brokerage houses - JPMorgan and Bank of America - initiated coverage on the counter with a positive rating.

Interestingly, both brokerage firms have given an identical target price on Tata Motors CV, which is the commercial vehicle arm of the Tata Motors entity that got demerged recently.

JPMorgan has put out an 'overweight' stance on Tata Motors CV with a target price of Rs 475.

The firm has noted that Tata Motors CV is positioned well given its disciplined local business, coupled with potential upside from global foray.

JPMorgan is expecting a modest upside to the demand of commercial vehicle going forward, thereby adding upside potential to financials.

The acquisition of Iveco, in particular, could be value accretive for the company, with JPMorgan forecasting an FY26-28 Ebitda/EBIT compounded annual growth rate of 13%/16%.

Meanwhile, Bank of America or BofA Securities have initiated coverage on Tata Motors CV as well. They have given a 'buy' rating on the stock with a target price of Rs 475, same as JPMorgan.

BofA also expects the Indian carmaker to see recovery cycle kicking in for its domestic and European businesses and is expecting an Ebitda CAGR of 15% between FY26 to FY28.

But that's not all. BofA foresees steady market share gains for Tata Motors CV going forward, which will be complemented by margin discipline, lower regulatory risk and a return on capital employed rate of 35%.

All of these factors mean there is a significant valuation re-rating for Tata Motors CV, whose Iveco acquisition is also set to yield value soon as the deal was done during a trough cycle.

Overall, both brokerages are seeing a strong and stable growth outlook for Tata Motors heading into 2026. Therefore, a target price of Rs 475 implies a significant upside of 23%.