JPMorgan cuts Bajaj Auto to 'underweight'

Cites weakening outlook for two-wheeler growth due to rising fuel prices and high inflation

JP Morgan Securities lowers its rating on Bajaj Auto Ltd to "underweight" from "neutral" and cut its target price to Rs 1,800 from Rs 2,060.

JP Morgan cites a weakening outlook for two-wheeler growth due to rising fuel prices and high inflation.

The investment bank also notes competition is set to intensify as rivals Hero MotoCorp Ltd and Honda Motor Co Ltd raise capacity.

As of 12:35 pm, Bajaj Auto shares are down 1.4% at Rs 1,960.75.