Recently Motilal Oswal has come up with a research report on some midcap and some large cap stocks. Among the large cap stocks one scrip was Tata Motors and they seemed too bullish on the share price. The broking firm has full confidence that the Tata Motors share price will shpw good momentum in 2017.
Motital Oswal is giving a target price of 610 in 2017 while the current price is 523.50. So there is still a sixteen and half percent upside possible in the stock. The main reason that Motilal Oswal has chosen Tata Motors is due to the companies international business. The company has brands like Jaguar and Land Rover and with the launching of new products the company will start showing good results specially under these two brands. This will be the biggest trigger for the company.
Not only this as far as volumes are concerned FY17-FY19 estimated volumes can be approximately around 12%. The revenue growth will be over and above 15%. These are some clear reasons that the stock price will see much more accelerated momentum in the coming days. The stock price will continue its upward journey in 2017.
Apart from this forex rate hikes will be reflected in the companies balance sheet on the export sales. So Motilal feels Tata Motors can be one of the bulls eye candidates of 2017. It will be one of the scrip with good return in 2017 and the target of 610 remains sacrosanct.
Now some small technical analysis. In the weekly charts the stock has crossed the middle bollinger bands which opens up the target for the upper bollinger bands which is hovering around 590 mark. The bullish stochastic in the weekly chart confirms the upward strength and the stock might tough upper bollinger band. At current price of 523.50 we recommend to BUY this Tata Motors scrip in every dip for the price target given by Motital Oswal