Reuters reported that Credit Suisse has upgraded TATA Steel to neutral from under perform, citing valuation comfort at current levels.

The investment bank said in a note that "FY13 should be an eventful year for TATA. Its domestic expansion is now just 1Q away, iron ore/coal output from Canadian Mozambique mines should also start, and its EU business should release working capital. These can materially change its cash generation potential."

However, weak steel market will continue at least till the first half of FY13 on back of supply chain unwinding in Europe, uncertainty in China and demand slowdown in India, it said and lowered its target price on TATA Steel stock to INR 340 from INR 400.

It added that "While a USD 6 billion market cap on USD 15 billion Enterprise Value makes an EV/EBITDA driven fair value extremely volatile, we believe short of a global crisis, it is hard to justify a fair value below INR 340."

(Sourced from www.reuters.com)