Reuters Market Eye - Shares in Hero MotoCorp fall 1.5 percent to 1,820.95 rupees after Credit Suisse downgrades the stock to "neutral" from "overweight" and cut its target price to 2,056 rupees from 2,401 rupees.
The investment bank cites caution about the company's near-term outlook given an expected slowdown of sales in the domestic two-wheeler market, though still likes the stock on a medium-term basis.
"For Hero, almost the entire growth in despatches since Jan has been a function of it building inventory; hence with little scope for further inventory increase, despatches will track retail volumes and remain weak," Credit Suisse says in a note dated on Thursday.