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Saturday, June 13, 2009

Nomura revises price target for Tata Steel from 295 to 405

Nomura in its latest research report has revised the price target for Tata Steel from Rs. 295 to Rs. 405, citing improved market conditions. But this price is around 20% discount to its current value.

According to the research report, domestic consumption for steel continues to be robust, but Corus will be a laggard and hence, put pressure on company's financials. Another concern that has been raised is on the highly leveraged balance sheet, on account of Corus acquisition.

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