Bharat Forge stock downgraded by CLSA

CLSA has downgraded Bharat Forge stock to underperform from buy and has reduced its target price to 280 rupees from 375 rupees citing risk of a slowdown in revenue growth due to cyclical nature of commercial vehicle market in India,Europe and the U.S.

We have downgraded our estimates for the overseas businesses,expecting a breakeven performance for FY12 but a loss for FY13 as the European businesses struggle,CLSA said in its note.

Earnings per share for FY12-13 has been cut 13-26 percent to reflect a cautious outlook for the overseas subsidiaries and the standalone business,CLSA added. At 10.14 a.m.,the stock was at 283.20 rupees,down 1 percent.

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