Shares of Eicher Motors were in the red on Thursday morning as brokerages had mixed reactions on the company’s launch of a new Royal Enfield model.

What Happened: On July 17, Eicher Motors unvelied the Royal Enfield Guerrilla 450 model, priced at ₹2.39 lakh. The model comes with three variants and test drives will begin from August 1 in India. Retail sales are slated to begin around mid-August in Europe.

Brokerage Views: CLSA maintained "underpeform" call with a target price of ₹4,157. The research firm said the variants of Guerrilla model are priced higher than Hero Mavrick 440 and Triumph Speed 400.

However, compared with the Hero Harley X440, it is competitively priced. The company is losing market share in this segment as competitors continue to scale up, the brokerage firm said. 

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Nomura also maintained a "reduce" call with a target price of ₹4,119. It said the Guerilla 450 may not able to revive Eicher’s growth. The price of the model is at 35% premium to Royal Enfield 350 cc models and a 3% premium to Triumph Speed model.

On the other hand, Citi maintained "buy" call on the stock with a target price of ₹5,300. The brokerage said the Guerrilla 450 model will provide an upgrade option to the current Royal Enfield 350 cc owners. The model could also support export volumes, which will aid in revenue and profitability. 

Goldman Sachs also maintained "buy" call with a target price of ₹5,400 and said the Guerrilla's introduction in the roadster category will help bolster the upgrade ladder for Royal Enfield 350 cc users.

Price Action: Shares of Eicher Motors were down 1.54% to ₹4,840.45 on Thursday morning.

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