Outlook worsens for Tata Motors: Morgan Stanley

Lowers its target price to Rs 240 from Rs 291

Morgan Stanley lowers its target price on Tata Motors to Rs 240 from Rs 291 and maintains its "equal-weight" rating on the stock.

Investment bank says Tata's Jaguar Land Rover's product cycle is entering a "slow phase," while India's medium and heavy commercial vehicle cycle is "weak", and the environment for luxury cars is becoming "more competitive."

Morgan Stanley adds that although volumes are "holding up well" in the key China market, its survey shows the "underlying trend in terms of discounts, inventory, and customer traffic is deteriorating."

Tata Motors shares last up 0.9 percent at Rs 242.15.