Shares of Eicher Motors, renowned for Royal Enfield Bullets and tractors, witnessed a significant surge, gaining almost 5% within a day and securing the top spot in Nifty 50 gains. Global brokerage firm Jefferies revised its target price upwards, fostering positive market sentiment toward Eicher Motors. The shares experienced a 4.59% rise, reaching Rs 3539 on BSE intra-day. Presently, the price stands at Rs 3483, indicating a 2.93% increase.
Jefferies’ Upbeat Outlook and Increased Target Price
Jefferies, a prominent brokerage firm, boosted Eicher Motors’ target price from Rs 4000 to Rs 4150, citing fading competition concerns, recovering demand for two-wheelers, industry premiumization, and favorable export conditions. The analysts at Jefferies foresee Eicher Motors benefiting from the two-wheeler demand recovery and the escalating preference for premium motorcycles.
Eicher Motors’ Resilience and Growth Trajectory
Despite market fluctuations, Eicher Motors has demonstrated resilience by recovering 25% in the last six months. The stock, which had reached a one-year high of Rs 3,886 in November 2022, experienced a 27% dip, hitting a one-year low of Rs 2835.95 on March 28, 2023. However, the stock rebounded from the low, showcasing strong potential and maintaining an upward trajectory.