 "BofA Merrill downgrades Mahindra, Bajaj Auto to 'underperform'")
Bank of America Merrill Lynch downgraded automakers Mahindra and Mahindra Ltd and Bajaj Auto Ltd to "underperform" from "buy" each, citing share gains since mid-2012 and valuations it considered "not compelling."
BofA Merrill also cut its price target on Bajaj Auto by 16% to Rs 1,925, and its price target on Mahindra and Mahindra to Rs 883 from Rs 965, according to its report dated March 8.