JP Morgan cuts Bajaj Auto to underweight, shares fall
Reuters: Mumbai, Mar 05 2013, 12:05 IST
J.P. Morgan Securities lowers its rating on India's Bajaj Auto Ltd to "underweight" from "neutral" and cut its target price to 1,800 rupees from 2,060.
J.P. Morgan cites a weakening outlook for two-wheeler growth due to rising fuel prices and high inflation.
The investment bank also notes competition is set to intensify as rivals Hero MotoCorp Ltd and Honda Motor Co Ltd raise capacity.
As of 1128 (0558 GMT), Bajaj Auto shares are down 1.4 percent at 1,960.60 rupees.
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