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Enough top-performing CAPS investors are striking a newly bearish tone on Indian auto manufacturer Tata Motors (NYSE: TTM) to take it down a notch from its long-held five-star rank to a less-than-stellar four stars. With 2,151 investors giving an opinion on Tata, there's plenty of analysis and commentary adding insight to the company.
With a massive domestic population and a rapidly advancing economy, growth had not been a problem for Tata until the automaker's growth stalled earlier this year, as rising interest rates and soaring raw material costs crimped Indian consumers' car-buying. Exports remain strong, and Tata's $2,500 ultimate economy car, the Nano, may start a new trend that competitors Toyota (NYSE: TM), GM (NYSE: GM), and Honda (NYSE: HMC) will have to match. Still, Tata's stock has been hammered lately following news that it would take over Ford's (NYSE: F) Jaguar and Land Rover businesses.
Given Tata's plan to raise $1.7 billion, investors have grown concerned about the manufacturer making such a big acquisition just before its highly anticipated Nano starts rolling off the production line. Moody's cut Tata's rating after the automaker sealed the deal for its new luxury brands, and many investors followed suit by cutting the stock out of their portfolios.
But some pretty sharp investors are still putting their money on the line with Tata, expecting explosive growth over the long haul. And even though CAPS members, on average, have hedged on Tata lately, 97% of those rating Tata still expect it to outperform the market going forward.
To see what the very best CAPS analysts are saying now about Tata Motors -- as well as other winning stocks they're picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.
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