Shares of Bajaj Auto edged lower on Wednesday after a global brokerage took a bearish stance on the stock as it sees heightened rivalry in the two-wheeler segment.

What Happened: Brokerage firm CLSA has maintained an “underperform” rating on Bajaj Auto shares, citing concerns over increased competition in the premium motorcycle segment.

Bajaj Auto, along with Triumph, recently launched two entry-level motorcycles, which CLSA described as promising but warned about competitive pressures.

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The global brokerage house has set a target price of ₹7,000 for Bajaj Auto, indicating a potential downside of over 40% from the current levels of around ₹11,900. The brokerage firm noted that while the new motorcycle launch is priced competitively, caution is necessary due to the intense competition in the premium segment.

Price Action: Bajaj Auto’s share price was down 0.23% at ₹11,922.9 in the early hours of trade on Wednesday. The stock has climbed nearly 80% so far this year.

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