Goldman Sachs has upgraded Hero MotoCorp to 'Buy' from 'Neutral' and raised target price to 2,356 rupees from 1,909 rupees as it believes Hero's recent underperformance on demand and competitive concerns provides an attractive entry point.
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"Competitors have found it difficult to take market share from Hero," it said in a note. The investment bank has reiterated its 'Buy' rating on Bajaj Auto and added it to its Conviction List as it expects Bajaj's differentiated strategy, will drive stable market share and margins.
"Moreover, we believe some of the concerns on increasing competition from Japanese competitors is overdone," the report said.
At 11.12 a.m., Hero Motocorp shares were up 1.91 percent at 2,133.50 rupees and Bajaj Auto shares were up 0.28 percent at 1,750.25 rupees