Ambit has assigns 'buy' rating to Tata Steel
Brokerage house Ambit has assigned a ‘buy’ rating to Tata Steel, with a price target of Rs 543.
By ET Bureau |
Tata Steel
CMP: Rs 491.25
Target price: Rs 543
Brokerage house Ambit has assigned a ���buy��� rating to Tata Steel, with a price target of Rs 543. ���We believe the company will turnaround its European operations and that the performance improvement will be visible in FY11 financials. Our positive stance is based on the view that the benefits of restructuring and the expected improvement in steel prices are not adequately reflected in the share price,��� said the Ambit note to clients.
���We believe there may be restructuring charges to the extent of Rs 1,380 crore in FY10 (estimated). At the same time, given the strategic and sustainable long-term benefits of these measures, we view them as being positive for operating performance. We expect these measures to expand Corus EBIDTA margin to 9.8% in FY11 (E),��� the note added.
CMP: Rs 491.25
Target price: Rs 543
Brokerage house Ambit has assigned a ���buy��� rating to Tata Steel, with a price target of Rs 543. ���We believe the company will turnaround its European operations and that the performance improvement will be visible in FY11 financials. Our positive stance is based on the view that the benefits of restructuring and the expected improvement in steel prices are not adequately reflected in the share price,��� said the Ambit note to clients.
���We believe there may be restructuring charges to the extent of Rs 1,380 crore in FY10 (estimated). At the same time, given the strategic and sustainable long-term benefits of these measures, we view them as being positive for operating performance. We expect these measures to expand Corus EBIDTA margin to 9.8% in FY11 (E),��� the note added.
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