Shares of Bajaj Auto have crashed around 4% percent in the last month as its exports numbers declining worried the investors. However, on Wednesday, the stock caught a break as it jumped over 0.5% as the markets opened for business.
What Happened: Global analyst firm JP Morgan maintained their ‘overweight’ rating on the stock with a target price of ₹4,400 – an over 18% upside from the stock’s Tuesday closing price ₹3,723.85. The firm observed that at the current valuation, the stock reflects favorable risk-reward odds.
See Also: If You Invested In Bajaj Auto Shares Instead Of Buying That Pulsar Last Month, Here’s How Much You Would Have Now
The analyst also expects the company’s margins to improve on the back of a better product mix. The company is set to launch several two-wheelers EVs in the coming quarters. Addressing the company’s declining exports, the firm said that while the auto maker’s export has crashed 27% year to date, the fall appears to be bottoming. It also noted that the company’s domestic volumes have improved owing to a better product mix.
However, domestic brokerages do not seem to be sharing the same view. HDFC Securities has a ‘reduce’ rating on the stock with a target price of ₹3,857. ICICI Direct also had a ‘hold’ rating on the stock with a price target of ₹4,100.
Price Action: Shares of Bajaj Auto jumped 0.42% to ₹3,739.50 as the markets opened on Wednesday
Read Next: Tata Motors Shares Jump As Company Said To Plan ₹8,000-Cr Funding Through EV Division
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.