Tata Motors Ltd has received thumbs up from analysts following a better-than-expected set of June quarter results that sent its shares soaring 6 per cent in Thursday's trade. Analysts said June quarter Ebitda for the commercial vehicle (CV) maker came in ahead of estimates, with strong performance across segments. They see margins improving further with price hikes.

The list of brokerages recommending 'Buy' on the stock included UBS, HSBC, Nomura, Investec, Kotak Securities and IIFL, among others. The highest target on the stock stands at Rs 700 by Emkay Global. The lowest target on the stock, based on 18 brokerage targets stood at Rs 434 by MOFSL.

Following the development, Tata Motors shares rose 6.16 per cent to hit a high of Rs 485 on BSE. The CV outlook is brighter now, said Nomura as it upgraded Tata Motors to 'Buy' with a new target of Rs 554.

This brokerage said the ongoing July-September quarter should see healthy double-digit MHCV growth. It noted that TMCV gained share in HCVs and buses, adding that there are 4,500 bus orders on hand.

"TMCV has gained market share due to its new range of trucks. For LCVs as well demand is stronger and TMCV is likely to benefit from a strong focus on EVs and export orderbook. With a 2.5 per cent price hike taken in July, we believe margins will improve from here on. IVECO’s 2QCY26 was also better. We believe there is strong potential to improve IVECO’s margins by sourcing from low-cost countries," it said.

Emkay said Tata Motors' Q1 volume growth of 26 per cent YoY was offset by a 3.5 per cent sequential dip in average selling price, mainly owing to lower MHCV trucks mix of 36 per cent against 44 per cent in Q4, leading to overall revenue growth of 23 per cent YoY.

The Tata Motors management remained constructive on the demand outlook, with July growth described as healthy and expectations of double-digit growth in Q2, supported by robust freight activity and growth in e-way bills.

Emkay said Tata Motors did not give any 2HFY27 growth guidance. It said E-CV momentum remained strong but battery cell availability remained a key constraint.

"TMCV is also confident of passing on the 2.5 per cent price hike taken in July which should help offset the continued commodity inflation. We keep our EPS largely unchanged, as healthy demand, EV momentum, and price pass-through should balance out near-term margin pressure. We maintain BUY and TP of Rs700," it said.

Nuvama said EV adoption is gaining momentum on favourable TCO with SCVPU penetration at 10 per cent and rising. Truck traction is also improving with growing customer interest and orders in hand.

"In the bus segment, TMCV has secured 850-plus orders across private and government tenders with further tender wins likely to support growth," it said while suggested a revised target of Rs 525 on the stock.

Elara said it values TMCV at 12 times September 2028 EV/Ebitda now on better volume outlook and sustained market share gains, as it rolled forward its earnings estimates by a quarter.

"We ascribe Rs 20 value to its stake in Tata Capital and Rs 11 to IVECO. We raise our SOTP-TP to Rs 508 from Rs 423 (12x Sep 2028E EV/EBITDA) and maintain Accumulate," it said.