HDFC Securities has maintained 'Neutral' on Bajaj Auto with target price of Rs 2,648 with current market price (CMP) of Rs 2,473 in its report.

Commenting on the investment rationale, HDFC Securities said, ''In Bajaj Autos' recent investor meet, management reiterated its goal of becoming a sizable global motorcycle player by leveraging its alliances with KTM and Kawasaki. In the domestic market, focus lies on repositioning the troubled Discover brand and improving market share through new launches in the Platina/Pulsar segment.

The company ruled out a re-entry into the scooter segment, atleast for the foreseeable future. In the commercial vehicle segment, management is fairly positive on the growth prospects for the next year.

We upgrade our FY16E/FY17E EPS by 1.6%/2.7% respectively on the back of better than expected demand outlook in exports and domestic three-wheelers. Bajaj Auto currently trades at a P/E of 16.5x/14.4x on FY16E/FY17E EPS. We maintain our Neutral rating with a TP of Rs 2,648 based on 16.5x on average of FY16E/FY17E EPS.''

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