StocksMarket.in

Maruti Suzuki hits fresh record high; Citi raises target to Rs 10,600 on increase in EPS estimates

December 15
19:06 2017
Filed under
Uncategorized

Maruti Suzuki India shares touched a fresh all-time high of Rs 9,237, rising 1.3 percent intraday Friday after the global brokerage house raised target price sharply.

While maintaining a buy call on the stock, Citi has increased its price target to Rs 10,600 (from Rs 9,400 per share earlier), implying 16 percent from Thursday’s closing price.

The research house also raised earnings per share estimates by 3-5 percent.

This was the third global brokerage house that raised target price on the stock.

Earlier in current month, Morgan Stanley also upped its target price on Maruti Suzuki to Rs 10,563 (from Rs 9,102) while maintaining overweight rating and CLSA raised target price to Rs 10,000 while retaining buy call.

Morgan Stanley feels Maruti is one of the most profitable car OEMs (original equipment manufacturers) globally and is a key beneficiary of coming turn in demand.

Suzuki-Toyota alliance will help set country’s largest car maker up for electric vehicles, the research house said while expecting 22 percent EPS CAGR over FY18-20. Its bull case target price stood Rs 14,400 per share.

CLSA feels valuations of the stock seem rich, but justified given high earnings visibility and improving outlook.

At 13:37 hours IST, the stock price was quoting at Rs 9,165.00, up Rs 47.05, or 0.52 percent on the BSE.

Related Articles

Archives