Tata Motors UBS Report, Tata Motors Shares Target Price UBS Report: Important news is coming out for share market investors. Meanwhile, important information is coming out for the shareholders of Tata Motors. According to information received from media reports, brokerage firm UBS has once again reiterated its opinion to ‘sell’ the shares of Tata Motors.
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Tata Motors UBS Report
The brokerage said in its released report that there is a risk of decline in margins of Tata Motors’ British subsidiary Jaguar Land Rover (JLR) and India’s passenger vehicle segment. Due to this, UBS has maintained the target price of Rs 825 for Tata Motors shares, which indicates a decline of more than 20% from the current level.
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Signs of decline in Tata Motors shares
Shares of Tata Motors fell more than 4 percent in early trade today after the report released by the brokerage firm. Around 9.40 am on Wednesday, Tata Motors shares were trading at Rs 992.05, down 4.22 per cent on the NSE. Shares of Tata Motors have risen by about 26 percent so far this year.
Why are share prices falling?
It was told that the demand for JLR’s premium models is decreasing. UBS said in its report that sales of JLR’s three major premium models – Defender, Range Rover and Range Rover Sport – have started showing a slowdown.
Brokerage firm UBS believes that the order book of these models has now come down to pre-Covid levels, due to which the discounts on Range Rover are likely to increase in the coming time.