Brokerages retain Tata Steel ratings post analyst meet

MUMBAI: Analysts have retained their positive ratings on Tata Steel after the company assured at a meeting on Thursday that Cyrus Mistry's exit from the chairmanship of holding company Tata Sons will not have any impact on strategic plans for European steel business.

The senior management's comments that the plan to sell UK downstream steel assets and form a JV with ThyssenKrupp remain on track were a relief after days of uncertainty, said analysts. CLSA and Credit Suisse have maintained their target price of `500 on Tata Steel, implying a 23.6% upside.On Friday, the stock ended up 2% at Rs 404.45 on the BSE after having lost 7% and Rs 2,800 crore in market capitalisation in the preceding three sessions.

Bloomberg data showed that the rating tally of 34 `buy', 10 `hold' and nine `sell' recommendations remained unchanged after the analyst meet.