Jefferies has maintained its buy rating on Eicher Motors and raised its target price to ₹8,000 per share, citing a sharp recovery in Royal Enfield’s (RE) growth momentum and an improving competitive landscape in the premium motorcycle segment.
The brokerage highlighted that after nearly 12 months of flat performance, RE registrations have accelerated by 14% year-on-year in the second half of FY25 and 23% in the first half of FY26. Jefferies expects Royal Enfield to remain a key beneficiary of the ongoing premiumisation trend in India’s two-wheeler market, noting that its most challenging phase of competition now appears to be behind.
The firm also pointed out that the “hourglass” structure of the two-wheeler market — with a large gap in the 200–300cc segment — presents a meaningful opportunity for RE if it decides to expand its portfolio below the Hunter model. Reflecting improved growth visibility, Jefferies has raised its FY26–28 earnings per share estimates by 3–8%.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
