Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - UBS downgraded Maruti Suzuki India (NSE:MRTI) Ltd (MSIL:IN) from Buy to Neutral and lowered its price target to INR13,300.00 from INR14,400.00, citing limited upside potential after downward revisions to earnings estimates.
The investment bank reduced its FY26 and FY27 EBITDA forecasts by 3% and 5% respectively, noting that Maruti Suzuki continues to underperform expectations. With this downgrade, UBS breaks from the consensus view that the automaker will experience a market share turnaround driven by small car demand recovery.
UBS previously supported the turnaround thesis but now sees "diminishing evidence across segments of an entry level demand revival" as the company faces dual challenges of affordability and desirability in its small car segment.
The affordability issue stems from approximately 6-7% price increases since 2023, combined with weak income growth and competition from other spending categories including education, healthcare, and electronics, according to UBS.
The firm also identified a "desirability challenge" affecting small cars, as consumers who can afford these vehicles increasingly prefer SUVs due to advantages in ground clearance, ergonomics, features, safety, and social perception.
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