BofA Merrill downgrades Mahindra & Mahindra, Bajaj Auto shares

Written by Reuters | Mumbai | Updated: Mar 8 2013, 14:32pm hrs
Bajaj AutoBofA Merrill also cut its price target on Bajaj Auto by 16 percent to 1,925 rupees. (Reuters)
Bank of America (BofA) Merrill Lynch downgraded Indian automakers Mahindra and Mahindra Ltd and Bajaj Auto Ltd to "underperform" from "buy" each, citing share gains since mid-2012 and valuations it considered "not compelling."

BofA Merrill also cut its price target on Bajaj Auto by 16 percent to 1,925 rupees, and its price target on Mahindra and Mahindra to 883 rupees from 965, according to its report dated March 8.