Hero MotoCorp shares fall 5% after Jefferies downgrades to 'Underperform', cuts target price by 11%

The shares of Hero MotoCorp fell more than 5 percent on December 18 after Jefferies downgraded the stock to ‘Underperform’ and cut its target price.

The shares of the bike-maker fell to Rs 5,513 apiece in the morning trading hours of Thursday, the lowest level seen by the stock in nearly five weeks. The shares have now extended losses for the fifth consecutive session.

Jefferies on Here MotoCorp:

Jefferies has downgraded Hero MotoCorp shares to 'Underperform' from 'Hold', and reduces its target price to Rs 4,950 per share from Rs 5,550 earlier. The latest target price implies a downside potential of nearly 15 percent from the stock’s previous closing price of Rs 5,817 per share.

The international brokerage said that the company’s domestic two-wheeler market share has plunged to a 25-year low of 28 percent in April-November this year, hurt by demand shift away from entry-level bikes and losses in 110-125 cc motorcycles segment.

It lowered Hero MotoCorp’s FY26-28 EPS by 2-7 percent due to lower volumes, but expects 5 percent rise in output volume

Hero MotoCorp share price history:

The shares of Hero MotoCorp dropped over 5 percent in the past five days, and 2 percent in the past one month. The stock has jumped 31 percent in the past six months, and is up over 36 percent in 2025 so far.

Hero MotoCorp shares currently has a P/E ratio of around 26. Its market capitalization stands at around Rs 1.14 lakh crore.

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