Hold Tata Steel, target Rs 290: HSBC

HSBC maintains hold rating on Tata Steel but maintains a 12-month target price of Rs 290. The consolidated EBITDA was up 27 per cent YoY on strong Indian, SEA performance amid weak Europe.

All eyes are now on Europe restructuring. HSBC further added that they need to see whether buyer of UK strip business will take on pension liabilities or not.

Management guided for higher volumes and prices going forward. However, higher than estimated steel prices and demand slowdown present upside risk to the stock.