Bajaj Auto shares rise; Credit Suisse says outperform

Investors are buying Bajaj Auto on Monday with the stock gaining nearly a percent in morning trade. Credit Suisse has an outperform rating on the stock and set a target price at Rs 2,210 apiece.

According to the brokerage house, new launches and festive season are near-term positives for the stock.

Credit Suisse has cut FY14 two-wheeler volume growth to 5 percent, but increased margin forecast for FY15-16 to 21 percent.

Meanwhile, auto companies met transport minister Oscar Fernandes last Friday to discuss quadricycle norms issue. Pune-based Bajaj Auto, Piaggio and Eicher Motor are in favour of quadricycles in India while Tata Motors, TVS Motor and Maruti Suzuki opposed the move.

Bajaj Auto is waiting for the approval from government to launch quadricycle RE-60 in India.

"With the fourth wheel, the vehicle is more safe and Bajaj Auto does not understand why a category of vehicle with new features should be opposed by the industry," said Rajiv Bajaj, MD, Bajaj Auto said.

At 11:31 hours IST, the stock was quoting at Rs 2,000.70, up 0.41 percent from previous close on the National Stock Exchange.