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Analysts are turning less optimistic about Tata Motors Ltd.'s future.
After reporting dismal October-December quarter earnings on Tuesday, the stock posted its biggest two-day drop in three months.
The automaker's stock now has the lowest consensus “Buy” ratings in two years, according to data available on Bloomberg. 73.5 percent of the analysts tracking the company have a “Buy” rating, down from 81.3 percent just two days ago. Twenty-six analysts tracked by Bloomberg have so far come out with their post-earnings notes to clients. Four of them have downgraded the stock, and more importantly, 22 have lowered their price targets.
Barring a small drop in November 2016, the Tata Motors stock hasn't seen a decline in price targets over the last one year.
Cues from the derivatives market also suggest further weakness. Open interest in the stock has surged 28 percent in two days indicating a large accumulation of short positions.
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