Goldman Sachs has upgraded Hero MotoCorp to 'Buy' from 'Neutral' and raised target price to Rs 2,356 from Rs 1,909 as it believes Hero's recent underperformance on demand and competitive concerns provides an attractive entry point.
Goldman Sachs has upgraded Hero MotoCorp to 'Buy' from 'Neutral' and raised target price to Rs 2,356 from Rs 1,909 as it believes Hero's recent underperformance on demand and competitive concerns provides an attractive entry point.
"Competitors have found it difficult to take market share from Hero," it said in a note. The investment bank has reiterated its 'Buy' rating on Bajaj Auto and added it to its Conviction List as it expects Bajaj's differentiated strategy, will drive stable market share and margins.
"Moreover, we believe some of the concerns on increasing competition from Japanese competitors is overdone," the report said.
However, Goldman has downgraded Maruti Suzuki to 'Sell' from 'Neutral' and cut target price to Rs 922 from Rs 1,042 on back of 32% increase in stock price year-to-date and lower-than-expected sales volume and margin performance in fiscal third quarter.
Competition and technology costs, yen exposure, cyclical weak near-term demand and recent labor issues are some other issue for Maruti, Goldman Sachs said in a note.
It has added Maruti to its Conviction List-Sell.
At 2.04 pm Maruti was quoting up 3.48% at Rs 45.35.
Hero Motocorp shares were up 2.10% at Rs 2,136.90 and Bajaj Auto shares were up 2.09% at Rs 1,782.65.
