Tata Motors Limited (NYSE:TTM): Looking For The Next Big Stock Breakout?

Stock analysts at UBS upped their rating on shares of Tata Motors Limited (NYSE:TTM) from Neutral to a new rating of Buy in their opinion released on January 27. Nomura analysts bumped their recommendation on TTM stock from prior rating of Reduce to Neutral in a separate flash note to investors on October 29. Analysts at CLSA issued an upgrade for the stock to Buy from previous rating of Sell, in a research note that dated back to October 28.

Tata Motors Limited (TTM) is most likely going to rise 6.64 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $19.98 as 12-month high price target. This represents a whopping 57.82 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $14.07, which means a return possibility of 11.14 percent in comparison with the closing price of the stock of $12.66 in recent trading session. The lowest price set for the stock is $6.99 which is just above -44.79 percent from TTM share’s price at the end of session.

The stock is lingering around the initial support level of $11.65. After this, the following support is at the zone of $11.57. Up until the time the TTM stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 49.81 on the daily chart, and this may be a cause for concern. In case the price goes below $11.57 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.84 level may cause a pull-back move approaching $11.96 mark.

In the recent trading session, Tata Motors Limited (NYSE:TTM) shares gained 7.97% or 0.93 points to reach at $12.66 with a thin trading volume of 1.409 million shares. It opened the trading session at $11.78, the shares rose to $11.88 and dropped to $11.685, the range by which the price of stock traded the whole session. The company now has a market cap of $8.44 billion and currently has 719.49 million outstanding shares. Tata Motors Limited (TTM) stock has plunged -11 percent of market value in 21 trading days.

TTM stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.94 share in the trailing 52 weeks. The stock’s value fallen -9.28 percent year to date (YTD) compared to a decline of -7.05 percent in 52 week’s period. The firm’s shares are still trading -26.09 percent below its 1-year high of $17.14 and 71.61 percent up from 52-week low of $7.38. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Tata Motors Limited (TTM) shares are trading at a P/E ratio of -55.6 times earnings posted in the trailing 12 months. The industry TTM deals with has an average P/E of 11.59. Its P/B ratio is standing at 0.95X compared to the 5.35 industry average.

Past records have indicated that shares in Tata Motors Limited declined on 8 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.