Jefferies has retained its Buy call on Eicher Motors with a target price of ₹5,500, suggesting a 19.6% upside from the current market price (CMP) of ₹4,598.80. In Q2, Eicher’s EBITDA remained flat year-over-year but came in 8% below estimates due to lower-than-expected margins for Royal Enfield (RE). However, RE volumes are showing signs of recovery, positioning the brand as a key beneficiary in the premiumization trend within the two-wheeler segment. Jefferies notes that the most challenging phase of competition may be behind RE, supporting its growth outlook.
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