UPDATE: Credit Suisse Upgrades Tata Motors to Outperform on New Range Rover Momentum

Credit Suisse upgraded Tata Motors

from Neutral to Outperform. Credit Suisse noted, "Our channel checks with Chinese dealers (done by the Chinese Autos team) suggest that dealers expect to sell ~30,000 RRs in China alone. Hence we have upgraded our RR estimates from 35k units to 50k units for FY14. … We believe the new RR can drive a >10% ASP increase for the company over the next few quarters. Combined with RR being a high margin product, we expect JLR's margins to expand ~200 bp over the next few quarters. Jaguar has a number of new launches lined up: new F type, AWD models for US market and XF Sportbrake for the European market which will boost utilisation levels at Jaguar from 70% to ~85%% and improve margins at the loss-making Jaguar as well." Tata Motors closed at $28.79 on Monday.