Goldman raises price target on Tata Steel shares

Goldman Sachs has raised its 12-month price target for Tata Steel to 774 rupees from 761 rupees and maintained its "buy" rating on the stock following better-than-expected quarterly earnings.

Goldman Sachs has raised its 12-month price target for Tata Steel to 774 rupees from 761 rupees and maintained its "buy" rating on the stock following better-than-expected quarterly earnings.

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The Wall Street bank said it expected full benefit of price hikes in Europe to flow through in the first quarter of FY12.

Tata Steel, the world's No 7 steelmaker, said after market hours on Wednesday net profit after taxes, minority interest and share of profit of associates jumped about 72% to 41.78 billion rupees ($937 million) in its fiscal fourth quarter.

Goldman, however, cut its earnings per share estimates for Tata Steel by 9% and 8% for FY12 and FY13 respectively to factor in lower volumes in Europe.