Reuters Market Eye - Credit Suisse upgrades Bajaj Auto to "outperform" from "neutral" and raises its target price to 1,854 rupees from 1,776 rupees, citing attractive valuations and better margins ahead.
The upgrade comes after India's second-largest motorcycle maker reported flat net profit for the April-June quarter on Wednesday, but saw its shares jump 5.25 percent as its profit margin weathered a slump in exports of its lucrative commercial vehicles.
Credit Suisse expects Bajaj Auto shares to outperform given expectations of around 25 earnings growth in fiscal 2014 thanks to improving exports.
Bajaj shares last up 0.14 percent.