Shares of Eicher Motors jumped over 2.5% on Thursday as Goldman Sachs initiated coverage for the stock with a ‘buy’ call.
What Happened: Shares of the company that have been on a five-straight session winning streak received another boost on Thursday when Goldman Sachs initiated coverage on the stock seeing an upside of around 10%. Goldman Sachs has a ‘buy’ rating for the stock with a price target of ₹3,660.
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The firm highlighted that the two-wheeler major faces the least risk in comparison to its peers with regard to the EV disruption over the next five years. The firm also highlighted that the company has favourable margin dynamics as it improved its 650 CC mix and continued expansion in the international markets. The firm also noted that the company has 10 new products in the pipeline.
The report comes just a day after Macquarie downgraded the stock’s rating from ‘outperform’ to ‘neutral’ in its latest research note. The firm cut the stock’s target price to ₹3,258 from ₹3,919. The firm also lowered its estimates for the company’s earnings in FY24 and FY25 by 12% and 10% respectively. The firm attributed the change in outlook to lower volumes and margins.
Price Action: Eicher’s share price was up 3.15% to trade at ₹3,226.15 in the late hours of trading on Thursday.
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