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Friday, October 30, 2020

Tata Motors Limited (NYSE:TTM) Stock is Plummeting, Here is Why

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Tata Motors Limited (TTM) shares are trading at lower $9.33 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $7.10.

To add more color to this target, the company’s high over the last year is $14.03 and the low is $3.92. Over the last 52 weeks, TTM is down -2.20% while the S&P 500 is up 9.62%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, TTM reported a profit of $1.6 billion. Tata Motors Limited also saw revenues increase to $4.25 billion. In addition, TTM has free cash flow of $0.0 as of 06-2020. The company’s EBITDA came in at -$660.19 million which compares well with its peers.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TTM has a short ratio of 3.42 and outstanding shares of 719.49M.

Company Outlook

TTM has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 1.94. Investors should also keep an eye on sector updates as TTM has historically followed its peers on positive news.

All told, Tata Motors Limited TTM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TTM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Tata Motors Limited TTM is now commanding a market cap of 6.71B and a float of 422.06M. TTM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TTM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in TTM, either long or short, and we have not been compensated for this article.

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