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UBS downgrades Bosch to 'sell', here’s why

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UBS downgrades Bosch to 'sell', here’s why

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UBS has downgraded Bosch to ‘sell’ from ‘buy’, cutting the target price sharply to Rs 16,000 from its earlier target price of Rs 19,600.

UBS has downgraded Bosch to ‘sell’ from ‘buy,’ cutting the target price sharply to Rs 16,000 from its earlier target price of Rs 19,600.

According to UBS, risk-reward is on the downside for the company on the back of rising electric vehicle (EV) risk.
The brokerage house has sharply cut estimates on the back of slower growth and margin slippage.
At current valuations of 31 times FY24 price to earnings, Bosch is trading at a significant premium along with its global peers.
UBS added that the EV success may not be big in terms of multiple rerating but on the downside if the company falls short of EV transition, it could be a big negative.
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