Credit Suisse Initiates Eicher Motors with Outperform, Shares Jump

Royal Enfield motorcycle manufacturer Eicher Motors' shares jumped nearly 5 per cent on Friday as Credit Suisse initiated coverage on the stock with an 'outperform' rating and an aggressive target.

Credit Suisse's 12-month target of Rs 9,000 represents an over 20 per cent upside in the stock from Thursday's close of Rs 7,400.

The investment bank expects Eicher Motors to clock a near 50 per cent CAGR (compound annual growth rate) jump in its consolidated earnings.

Eicher Motors is trading at 21 times its calendar year 2015 earnings, which is attractive, the brokerage added.

As of 11:25 a.m., Eicher Motors shares traded at Rs 7689.00 apiece on the BSE, up 4.12 per cent from the previous close. The benchmark Sensex traded up 0.2 per cent around 25,100.