MStanley raises Tata Global to 'overweight'

Reuters market Eye - Morgan Stanley upgrades Tata Global Beverages Ltd to "overweight" from "equal-weight" and raises its target price to 164 rupees from 143 rupees, citing cheap valuation and a cyclical uptrend in its international business.

The uptrend in the company's international business coupled with ongoing efforts to improve operating efficiency and cost-management initiatives will drive 1.5 percent expansion in operating margin and 21 percent growth in profit for FY14, the investment bank said in a report on Tuesday.

Tata Global is the cheapest stock in its coverage, it added.

Shares in Tata Global were up 1.2 percent at 141.85 rupees at 3:14 p.m.

 

(Reporting by Abhishek Vishnoi)