Citigroup upgrades rating on Maruti Suzuki to 'buy'
Citigroup has upgraded its rating and price target on Maruti to a ‘buy’ and Rs 1,542 from Rs 1,079 earlier.
By ET Bureau |
Maruti Suzuki
CMP: Rs 1,386
TARGET PRICE: Rs 1,542
Citigroup has upgraded its rating and price target on Maruti to a ���buy��� and Rs 1,542 from Rs 1,079 earlier, as it expects the Indian car market to resume growth at the trend rate of 12-15% over 2009-10 to 2011-12. ���Maruti is best positioned to benefit from this growth, in our view, given its dominance in the domestic car market. The company���s rising penetration in the diesel car market gives it a more balanced product mix than two years ago, while export initiatives will reduce its dependence on the domestic car market,��� the brokerage said in a report.
���Urban consumption is showing signs of a nascent recovery. Rural demand may be hit by a failed monsoon, but we reckon urban demand is on a sharp recovery curve,��� it said. Citi added the stock valuations are slightly on the higher side, but still comfortable, given the stock has corrected 15% from its peak.
CMP: Rs 1,386
TARGET PRICE: Rs 1,542
Citigroup has upgraded its rating and price target on Maruti to a ���buy��� and Rs 1,542 from Rs 1,079 earlier, as it expects the Indian car market to resume growth at the trend rate of 12-15% over 2009-10 to 2011-12. ���Maruti is best positioned to benefit from this growth, in our view, given its dominance in the domestic car market. The company���s rising penetration in the diesel car market gives it a more balanced product mix than two years ago, while export initiatives will reduce its dependence on the domestic car market,��� the brokerage said in a report.
���Urban consumption is showing signs of a nascent recovery. Rural demand may be hit by a failed monsoon, but we reckon urban demand is on a sharp recovery curve,��� it said. Citi added the stock valuations are slightly on the higher side, but still comfortable, given the stock has corrected 15% from its peak.
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