Credit Suisse raises Eicher price target by 4%

Credit Suisse has increased its price target on Eicher Motors to Rs19,200 from Rs18,400, while maintaining its neutral rating on the stock after the December quarter results. The brokerage has raised its earnings estimates by 2% on higher margin estimates for its motorcycle product Royal Enfield.

“Results were strong with ~100 bp QoQ margin expansion at RE (Royal Enfield)—but for the loss of production due to Chennai floods, margins could have been even higher,”said Credit Suisse analysts in a client note.

At 2:05 PM on Monday, Eicher shares were up 3.3% at Rs 18,756.

The brokerage said demand for Royal Enfield remains robust. “Royal Enfield (RE) continues to enjoy strong demand with blended waiting periods at about three months,” the analysts said.