BofA upgrades Tata Motors on strong JLR sales

Bank of America-Merrill Lynch upgraded Tata Motors to 'buy' from 'neutral' and raises its target price to Rs 360 from Rs 285.

BofA-Merrill expects Tata's key unit Jaguar Land Rover would meet full-year sales expectations of 363,000 units and sustain momentum.

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At home, the investment bank said Tata's truck/bus unit is closer to a trough, while light commercial vehicles are "growing ahead of peers" and the utility vehicles segment is benefitting from a structural uptrend.

The domestic cars unit may not recover, Bank of America-Merrill Lynch added, but said lowered expectations have been built into forecasts.

Shares in Tata Motors were last up 0.4 percent at Rs 317.

Reuters