Street Calls of the Week
Investing.com - Goldman Sachs upgraded Maruti Suzuki India Ltd (MSIL:IN) to Buy from Neutral on Tuesday, while significantly raising its price target to INR18,900.00 from INR13,800.00.
The upgrade reflects Goldman Sachs’ optimism about a potential revival in entry-level car demand following GST cuts and price adjustments by Maruti Suzuki, according to the research note.
Goldman Sachs highlighted the company’s resumption of new model launches after a 2.5-year gap, specifically mentioning the Victoris SUV and eVitara models, which are expected to add approximately 180,000 additional units by FY27E, representing an 8% volume increase compared to FY25.
The investment bank also cited Maruti Suzuki’s favorable exposure to pay commission in the upcoming auto demand cycle and relatively low CO2 risk compared to peers as the industry approaches the CAFE 3 regime in FY28E.
Goldman Sachs noted that the eVitara model is expected to sell more initially in the European market, where stricter CO2 norms are being implemented, with Maruti selling the model to both Suzuki and Toyota.
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