Deutsche Bank downgrades Tata Motors to sell on weak demand, rising competition

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Deutsche Bank has downgraded Tata Motors to ‘sell’ from ‘buy’ and reduced its target price to Rs 180 from Rs 190 saying it expects weak demand and rising competition to impact returns in domestic business of the company.

“We expect heavy commercial vehicles growth (in India) at 0/10 percent for FY13/14; our checks suggest incipient weakness in certain segments, which would spread to all segments,” said the bank in a note on Saturday.

At 9:55 a.m, shares of Tata Motors were down 0.66 percent at Rs 201.85.

Reuters