Tata Steel Shares Rise After JPMorgan Raises Target Price

Tata Steel Ltd.'s share price rose in Thursday's session as JPMorgan raised the target price after reiterating 'overweight' rating on the stock. The brokerage raised the target price to Rs 180, which implied 20% upside potential.

The reason behind JPMorgan's positive view on the Nifty 50 counter is visible positive catalysts to earning growth of European business. Expected supportive contribution from Germany's infrastructure fund news and substantial increase in steel price spread is not fully appreciated yet by some investors. JPMorgan expects that Tata Steel's Europe business will reach Ebitda breakeven in the first quarter of financial year 2026. They raised Ebitda estimates for FY26 and FY27 by 8–11%.

There are expectations of a potential steel output cut from China, the brokerage's investors team noted during the Hong Kong Shanghai meeting. If it happens, it will be a key catalyst. However, it's not priced in JPMorgan's estimate yet.

Tata Steel's capital expenditure is projected to increase Rs 12,000 crore by financial year 2026. Lower capex, and Europe Ebitda will drive the steel manufacturer's Ebitda growth by three times.

JPMorgan cautioned about potential adverse impact on demand due to US tariff policy, while tension escalation between Russia and Ukraine will be positive for Europe steel prices, the brokerage said.