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Investing.com - Morgan Stanley has upgraded Eicher Motors (NS:EICH) from Underweight to Equalweight, significantly raising its price target to EUR7,201.00 from the previous EUR4,079.00.
The upgrade comes as Morgan Stanley expects Eicher Motors to benefit from opportunity and demand improvements, particularly in its sub-350CC motorcycle portfolio, which represents 91% of the company’s domestic volumes in fiscal year 2025.
Morgan Stanley anticipates a 10% reduction in GST rates for motorcycles under 350CC, potentially resulting in an approximate 8% price decrease that could generate substantial demand tailwinds for Eicher Motors.
The investment bank identified replacement demand as the key driver in the two-wheeler market, suggesting premium motorcycle manufacturers like Eicher could see the most significant benefits from the tax changes.
Morgan Stanley noted that while the sub-350CC segment would benefit, Eicher’s motorcycles above 350CC would face higher GST rates, which could potentially limit margin expansion due to a weaker product mix.
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