Bajaj Auto lowered to underperform, target cut by Macquarie

[Smart Profit]

Macquarie has downgraded Bajaj Auto to underperform from neutral and
cut target price to 1,320 rupees from 1,560 rupees on a weak growth
outlook for the motorcycle segment in India.
"We expect competitive intensity in the two-wheeler space to rise as
Honda (Honda Motors and Scooters India) is increasing its capacity
aggressively," the investment bank said in a note.
It expects Bajaj Auto's margins to be under pressure next year due to
deterioration in domestic product mix and an export incentive scheme
ending in March 2012. "We believe Bajaj will sacrifice margins for
growth and market share," Macquarie said.
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http://articles.economictimes.indiatimes.com/2012-01-20/news/30647108_1_bajaj-auto-macquarie-motorcycle-segment