UPDATE: Oppenheimer Initiates Tata Motors Limited with Outperform on Robust Business Growth

In a report published Friday, Oppenheimer analyst Manish Hemrajani initiated coverage on Tata Motors Limited TTM with an Outperform rating and $31.00 price target. In the report, Hemrajani noted, “We initiate coverage of Tata Motors, one of India's largest automobile companies, a leader in commercial vehicles and a dominant player in premium luxury vehicles (Jaguar and Land Rover), with an Outperform rating and a $31 price target. We believe robust growth of the JLR business (70% of FY13E revenues) will be the key trigger through continuous unveiling of new products (40 new models/variants over the next five years) and through well-diversified geographical reach in key growth markets, especially China. In addition, strong performance and sustained leadership in the Indian domestic commercial vehicle segment, despite near-term pressures from the passenger vehicle segment, are expected to drive the Indian domestic business.” Tata Motors Limited closed on Thursday at $25.65.