Bank of America (BofA) has shared its latest outlook on key auto stocks, highlighting upgrades and downgrades based on market trends and company-specific dynamics. Here’s a summary of the key updates:
Maruti Suzuki stock
- Upgrade: From Neutral to Buy.
- Revised Target Price (TP): ₹14,000 (up from ₹13,000).
- Reason: BofA cites multiple growth levers that could unfold in CY25, making Maruti a preferred pick among four-wheeler (4W) stocks.
Bharat Forge stock
- Downgrade: From Neutral to Underperform.
- Revised TP: ₹1,100 (down from ₹1,450).
- Reason: The core business is slowing, particularly in Class 8 trucks, global passenger vehicles (PV), and Indian trucks, which remain range-bound.
TVS Motor stock
- Upgrade: From Underperform to Neutral.
- TP: ₹2,625.
- Reason: The recent correction in TVS Motor’s stock has made its valuation less demanding. Additionally, the company has executed well on market share expansion.
Maruti Suzuki: Poised for long-term growth in the four-wheeler segment with multiple catalysts in the pipeline.
Bharat Forge: Faces challenges in its core business amidst a subdued outlook for global and domestic truck demand.
TVS Motor: Gains recognition for strong execution and better valuation levels post correction.
BofA’s recommendations reflect varied growth prospects in the auto sector, driven by evolving industry trends and company performance metrics.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
