Citi downgrades Bajaj Auto to Neutral

Citi Research has downgraded Bajaj Auto to Neutral from its earlier rating of Buy. The downgrade has been announced after the stock had a sharp run up of 33% since July.

The revised target for the stock has been fixed as Rs.2189 from the earlier target price of Rs.1835. The new target price is based on 16x Mar14E P/E. The stock currently trades at equal to 16x FY14E consensus EPS and the research firm expects the stock to trade in a band of 15-17x.

The EPS estimates have been revised up by 4.4% and 9.4% over FY14 and FY15 respectively.

Source : Equity Bulls

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