Shares of Apollo Tyres jumped 4% in early trade after UBS upgraded its rating on the stock to 'buy' from 'neutral', while also raising its target price to Rs 590, from Rs 580 earlier.
The brokerage believes that the market is underappreciating the tyre-maker's medium term earnings recovery potential, as the stock continues to trade at a discount to peers.
Apollo Tyres' India operations are approaching inflection point, while Europe will see a "better road ahead", according to UBS.
Overall outlook for the company is improving as management takes concrete steps to strengthen the India business, even though second quarter of fiscal 2027 may endure further pressure considering the rising natural rubber prices.
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