EUR/USD likely to find a peak near 1.25: UBS
On Wednesday, BofA Securities updated its financial outlook on Tata Steel (NSE:TISC) Ltd (TATA:IN), increasing the price target from INR152.00 to INR155.00 while keeping a Neutral rating on the stock. The adjustment follows Tata Steel’s fourth-quarter fiscal year 2025 operating performance, which matched the expectations of BofA Securities.
Bharat Subramanian, an analyst at BofA Securities, highlighted key points from the company’s recent conference call. Tata Steel has set a goal to save INR115 billion across its operations by fiscal year 2026. These savings are expected to come from various cost and efficiency initiatives, including enhancing employee productivity, optimizing inventory, and reducing fixed costs such as repairs and maintenance. The company also aims to improve its supply chain.
Specifically, these cost-saving measures could boost profitability in the Netherlands to EUR70-80 per ton and help the UK operations reach a break-even point. In India, the cost-saving efforts could lead to a reduction in conversion costs by INR1,000-1,200 per ton. Additionally, the company plans to reduce costs at its Jamshedpur plant, primarily through a decrease in the wage bill.
Tata Steel also provided guidance on volume, projecting a 1.5 million ton increase in consolidated deliveries for fiscal year 2026, which would be an uptick from the 31 million tons sold in fiscal year 2025.
In response to these strategic plans, BofA Securities has made slight upward revisions to its EBITDA forecasts for fiscal years 2026 and 2027, each by less than 1%. The new price objective of INR155.00 per share reflects these updated margin and capital expenditure estimates. Despite the increased price target, BofA Securities reiterates its Neutral stance on Tata Steel, citing a balanced risk-reward profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.