Tata Steel shares hit 52-week high; heres what brokerages suggest
Tata Steel UK governement news: The stock rose after the United Kingdom announced a joint investment package with Tata Steel worth 1.25 billion pounds last week, including a government grant of 500 million pounds for the countrys largest steelworks in Wales that will help protect thousands of jobs and boost the British economy.
Tata Steel share price NSE, Tata Steel UK government news: Tata Steel Ltd, NSE: Tata Steel shares surged over 2 per cent in the opening deals on Monday, September 18, to clock a fresh 52-week high of Rs 135 apiece on the NSE, surpassing an earlier peak of Rs 133.15 touched on September 14, 2023. The stock rose after the UK announced a joint investment package with Tata Steel worth 1.25 billion pounds last week, including a government grant of 500 million pounds for the country's largest steelworks in Wales that will help protect thousands of jobs and boost the British economy. Tata Steel shares finished at Rs 130.5, down by Rs 1.45 or 1.10 per cent on NSE.
The project will bolster the UK's steel security, and it will be the first major step towards decarbonisation of the local steel industry, reducing direct emissions by 50 million tonnes over a decade.
Tata Group Chairman N. Chandrasekaran said, "The agreement with the UK Government is a defining moment for the future of the steel industry and indeed the industrial value chain in the UK. It has been an absolute pleasure to work with His Majesty's Government and Prime Minister Rishi Sunak in developing the proposed transition pathway for the future of sustainable steelmaking in the UK." Read more
Tata Steel share price target: here's what top brokerages suggest
Brokerage CLSA has maintained an outperform call on Tata Steel after it entered into an agreement with the UK government to restructure assets and has kept the target price at Rs 145. Mentioning the structural changes in operations and cost, the brokerage in its note also said, "Overhang removed, but value accretion hinges on cost savings."
Besides, Macquarie, too, has maintained an outperform rating with a target price of Rs 120 on the counter, while Jefferies has maintained a buy call with a target price of Rs 145. Moreover, Morgan Stanley has maintained an equal-weight rating with a target price of Rs 110.
Here's how the stock has moved so far:
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