Bank of America Merrill cuts Bajaj Auto price target

Bank of America Merrill Lynch on Thursday said it has cut the price target for motorcycle maker Bajaj Auto to Rs 1,340 from Rs 1,480 on expectations of margin pressures and a sales slowdown in the current fiscal year.

May 19, 2011 / 12:28 IST

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Bank of America Merrill Lynch on Thursday said it has cut the price target for motorcycle maker Bajaj Auto to Rs 1,340 from Rs 1,480 on expectations of margin pressures and a sales slowdown in the current fiscal year.

It however, maintained its 'underperform' rating on the stock.

Bajaj Auto March-quarter net profit nearly tripled mainly due to a one-time gain, and it was continuing to face input cost pressures.

BOFA-Merrill said it expects margin decline to be higher due to rise in input costs and domestic growth rates for both two wheelers and three wheelers sales are set to decelerate.

At 10.18 am, shares of Bajaj Auto were at Rs 1,288.5 up 0.09% in a flat Mumbai market.

first published: May 19, 2011 11:24 am

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