Should buy Bajaj Auto after auto major launches world's first CNG bike? Here is what brokerages recommend
Even as Bajaj Auto made a novel launch with its unveiling of the world's first CNG bike, UBS has downgraded the stock to 'sell' stating that its launch would not impact the electrification pace of the market as the future belongs to EV.
After Bajaj Auto launched the world’s first CNG motorcycle-the Freedom 125, various brokerages have recommended their take on the counter. Here are the ratings for the stock by different brokerages along with the target price:
Jefferies- Buy; TP- Rs 11,630, Potential upside- 21 per cent
The global brokerage has recommended a buy on the stock considering the company’s latest CNG bike launch as an attractive value proposition at 50 per cent lower operating cost. Also, the company is gaining share in 125 cc bikes. The brokerage estimates 15 per cent volume and 17 per cent EPS CAGR over FY24-27.
Nomura- Buy; TP- Rs 10,207, Potential upside: 6 per cent
The brokerge views the CNG bike to be attractively designed with a premium look, rather than a commuter look. Further, the brokerage believes that such a bike coul create a segment of its own. Additionally, the research firm believes that the company may potentially sell 5,000- 10,000 units per month by the end of 2024. However, the only limitation cited by the brokerage is waiting poeriods at CNG pumps.
Goldman Sachs- Neutral; TP- Rs 9,970, Potential upside- 3.5 per cent
The brokerage has raised the target on Bajaj Auto from the earlier Rs 9,600 to Rs 9,970.
UBS- Sell; TP- Rs 6,250, Potential downside- more than 35 per cent
The brokerage has recommended 'sell' rating on the counter citing that the future belongs to the electric vehicle landscape and that CNG motorcycles won't impact the electrification pace of the market.
Citi- Sell; TP- Rs 6,500, Potential downside- 33 per cent
The brokerage has given a 'sell' rating similar to UBS for a still lower downside in comparison.
Macuarie- Neutral; TP- Rs 8,790, Potential downside- 9 per cent
The brokerage has given a 'neutral' call on the counter.