L&T Share Price Falls After BofA Downgrades To Underperform — Check Target Price, Share Price Movement

Larsen & Toubro Ltd. share price fell after BofA downgraded the stock to Underperform citing concerns over limited upside potential. The brokerage maintained the target price of Rs 3,700 apiece, which implied a 0.8% downside from Friday's close price.

Larsen & Toubro's share price outperformance left a little upside potential. The share price has jumped over 10% in the past two months, leaving valuations at fair levels. Key positives are now behind with no scope for further valuation expansion in BofA's view.

The company has previously been the sole construction stock with a 'Buy' rating from BofA because of robust order inflow and upbeat earnings.

India's capex is expected to slow materially to 11% between 2025 and 2027, which isn't good for Larsen & Toubro's domestic order growth. Moreover, BofA sees risk of slowing order flows and execution for its Middle-East business as well because of subdued energy prices.

However, BofA has hiked the FY26–FY28 earnings estimates by 3–4% as Hyderabad Metro Phase I , a loss-making project, exited Larsen & Toubro's portfolio.