Shares in Hero MotoCorp fell 1.5 percent to Rs 1,820.95 after Credit Suisse downgraded the stock to “neutral” from “overweight” and cut its target price to Rs 2,056 from Rs 2,401.
The investment bank cited caution about the company’s near-term outlook given an expected slowdown of sales in the domestic two-wheeler market, though it still preferred the stock on a medium-term basis.
Screengrab from site
“For Hero, almost the entire growth in despatches since Jan has been a function of it building inventory; hence with little scope for further inventory increase, despatches will track retail volumes and remain weak,” Credit Suisse said in a note dated on Thursday.
Firstpost encourages open discussion and debate, but please adhere to the rules below, before posting. Comments that are found to be in violation of any one or more of the guidelines will be automatically deleted:
Personal attacks/name calling will not be tolerated. This applies to comments directed at the author, other commenters and other politicians/public figures
Please do not post comments that target a specific community, caste, nationality or religion.
While you do not have to use your real name, any commenters using any Firstpost writer's name will be deleted, and the commenter banned from participating in any future discussions.
Comments will be moderated for abusive and offensive language.