Bosch slips 3% on negative news flow; CS initiates coverage with 'Underperform'
There were news reports recently linking the company with the supplying engine management systems to Volkswagen US, which the company categorically denied in a filing to the bourses.
By ET Online | Updated:
NEW DELHI: Shares of Bosch India slipped over 3 per cent in Tuesday's trade as news flow regarding the Volkswagen scandal in the US hit investor confidence on the counter. There were news reports recently linking the company with the supplying engine management systems to Volkswagen US, which the company categorically denied in a filing to the bourses.
Investment bank Credit Suisse has initiated coverage on the stock with an 'underperform' rating and a target price of Rs 13,500. "Bosch has traditionally been considered a play on emission norms," the bank said in a note. In reaction to the development, the scrip fell 3.54 per cent to hit a low of Rs 18335.30 on the BSE.
"Impending BS-IV rollout may put Bosch's dominant position in the CV market under threat, and a leading CV OEM has indicated that Bosch is no longer its exclusive supplier," it said.
Sale of four-wheelers not meeting Bharat Stage (BS)-IV emission norms will be barred in India from April 2017, with the government deciding to bring the entire country under the ambit of the tighter pollution control standard, a PTI report said.
Credit Suisse expects Bosch to clock a medium-term revenue growth in mid-teens, with FY17 earnings estimated at around 12 per cent, which is below the consensus estimate.
Investment bank Credit Suisse has initiated coverage on the stock with an 'underperform' rating and a target price of Rs 13,500. "Bosch has traditionally been considered a play on emission norms," the bank said in a note. In reaction to the development, the scrip fell 3.54 per cent to hit a low of Rs 18335.30 on the BSE.
"Impending BS-IV rollout may put Bosch's dominant position in the CV market under threat, and a leading CV OEM has indicated that Bosch is no longer its exclusive supplier," it said.
Sale of four-wheelers not meeting Bharat Stage (BS)-IV emission norms will be barred in India from April 2017, with the government deciding to bring the entire country under the ambit of the tighter pollution control standard, a PTI report said.
Credit Suisse expects Bosch to clock a medium-term revenue growth in mid-teens, with FY17 earnings estimated at around 12 per cent, which is below the consensus estimate.
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