Tata Elxsi, Tata Tech Shares Soar 10% After JPMorgan Upgrade on Auto R&D Recovery

• Tata Elxsi and Tata Technologies shares jumped 10% and 4.5-5.3% respectively on January 7 after JPMorgan upgraded their stocks.
• JPMorgan upgraded both Tata group stocks to "Neutral" from "Underweight" as automaker clients resume R&D programs and tariff uncertainties ease.
• Demand recovery is expected from Europe and APAC clients, with auto investments focusing on hybrids and EVs recovering medium-term.
• JPMorgan lifted price targets for Tata Technologies to Rs 710 (from Rs 570) and Tata Elxsi to Rs 4,800 (from Rs 4,000).
• KPIT Technologies remains JPMorgan's top pick with an "Overweight" rating and a target price of Rs 1,400.

Why It Matters: JPMorgan's upgrade on improving auto R&D demand boosts Tata Elxsi, Tata Tech shares significantly.