Morgan Stanley upgrades Tata Motors on improved profitability
Morgan Stanley upgraded Tata Motors to 'overweight' from 'equalweight', citing more stability in the China market, the prospect for improved profitability in India, and a "strong" pipeline for unit Jaguar Land Rover, among other factors.
Morgan Stanley upgraded Tata Motors to 'overweight' from 'equalweight', citing more stability in the China market, the prospect for improved profitability in India, and a "strong" pipeline for unit Jaguar Land Rover, among other factors.
The upgrade comes as the investment bank raised its view on India's medium and heavy commercial vehicles (MHCV) sector to 'attractive', saying the segment cycle should hit a trough in the next six months.
Morgan Stanley predicted MHCV volumes will recover over fiscal 2014 and 2015 as part of a recovery in industrial activity.
Morgan Stanley also upgraded Ashok Leyland to 'overweight' from 'underweight' calling the bus and truck maker "a good proxy to play the eventual industrial recovery."
Tata Motors was down 1.2 percent, while Ashok Leyland is up 1.5 percent.
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