Auto stock to buy: Analysts suggest buying this stock for long-term, check targets
Zee Business analyst Kushal Gupta suggests investors buy automobile stock Hero MotoCorp for one year. On Tuesday, May 14, the stock closed at Rs 5,041.9 each, up 3.15 per cent or 153.95 per share on BSE.
The domestic equity benchmarks Nifty50 and Sensex rose on Tuesday, May 14, on purchasing in wider markets, led by increases in oil and gas, auto, and metal sectors. The Sensex index increased 328.48 points, or 0.45 per cent, to 73,104.61. The 50-share Nifty finished at 22,217.85, up 113.8 points, or 0.51 per cent.
Meanwhile, analysts suggest buying this auto stock for a long-term perspective.
Auto stock to buy
Zee Business analyst Kushal Gupta suggests investors buy automobile stock Hero MotoCorp for one year. On Tuesday, May 14, the stock closed at Rs 5,041.9 each, up 3.15 per cent or 153.95 per share on BSE.
Hero MotoCorp - Share price target
Gupta has given a target price of Rs 5,600 per share. The target implies an upside of more than 11 per cent from Tuesday's closing price.
How brokerages view Hero MotoCorp now
Jefferies maintained its 'buy' rating on Hero MotoCorp with a target price of Rs 5,650 per share after the auto major's earnings announcement.
It was yet another good quarterly performance by Hero MotoCorp, with a record EBITDA per vehicle, according to the brokerage.
Jefferies pegs Hero MotoCorp's earnings per share to grow at a CAGR of 17 per cent over the FY24-26E period.
CLSA and Macquarie retained their 'outperform' rating on Hero MotoCorp with a target of Rs 5,280 and Rs 5,557 respectively.
According to CLSA, the auto giant's fourth-quarter result was above estimations. The company's EBITDA margin for the petrol two-wheeler (2w) segment stood at 15.6 per cent, while the EV business dragged the margin down by 130bp in 4QFY24. Management guides to double-digit revenue growth, the brokerage said.
On the other hand, JP Morgan maintained its 'overweight' rating on Hero MotoCorp, Morgan Stanley retained its 'underweight' rating on this auto major while Citi maintained its 'buy' rating on the stock.
JP Morgan, Morgan Stanley, and Citi have given a target of Rs 5,240, Rs 3,648 and Rs 5,500 respectively.
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