Credit Suisse downgrades Hero MotoCorp, shares fall

Shares in Hero MotoCorp fall 1.5% to Rs 1,820.95 after Credit Suisse downgrades the stock to "neutral" from "overweight" and cut its target price to Rs 2,056 from Rs 2,401.

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.