Eicher Motors Share Price Target: Goldman Sachs Gives Second-Most Bullish Target As Yet — Here's Why
Goldman Sachs is the fifth analyst after JPMorgan, CLSA, Morgan Stanley and HSBC to have Eicher Motors share price target above the Rs 7,000-mark, Bloomberg data showed.
Eicher Motors share price target gets a boost from Goldman Sachs over the automobile manufacturer's quarter-to-date performance. The brokerage has raised the target price to Rs 7,300 apiece from Rs 6,600 apiece. The current target price implied an upside of 6.2% from Friday's closing price.
The price target is the second highest among the analysts tracked by Bloomberg. Besides, Goldman Sachs is the fifth analyst after JPMorgan, CLSA, Morgan Stanley and HSBC to have Eicher Motors share price target above the Rs 7,000-mark, Bloomberg data showed.
Eicher Motors has surprised on the quarter-to-date volume growth because of the July-August Royal Enfield numbers of 2,01,000 units, Goldman Sachs noted. Following the outperformance, Goldman Sachs has raised the estimates for volume growth of Royal Enfields to 2,90,000 from an earlier 261,000 in calendar year 2026, it said.
The new estimate implied over 27% volume growth in the year, according to the brokerage. The volume growth estimates for Royal Enfield are well above the year-to-date underlying two-wheeler industry growth in the mid-single-digit growth, Goldman Sachs said.
Royal Enfield has decided to pass on the entire benefit of the GST rate cut to customers, which means that there is potential for upside in financial years 2026 and 2027. Goldman Sachs noted, however, that they did not factor this into the model as of now.
Goldman Sachs' current target price for Eicher Motors stock is based on asum-of-the-parts-model methodology, applying historical price-to-earnings multiples to quarter five and quarter eight estimates on Royal Enfield's standalone business and profit from joint VE commercial vehicles.
The downside risks to Eicher Motors are over-cannibalisation by the Hunter 350 into the flagship Classic and Meteor 350 models, it said, adding that there is rising competition in the premium motorcycle market and a slower-than-expected ramp-up in export and rural Indian markets.
Eicher Motors share price ended 1.73% higher at Rs 6,875 apiece on Friday. The stock rose for the second day in a row, and it was the second top gainer in the NSE Nifty Auto index.
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