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.
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
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