UBS ups Mahindra 038; Mahindra to 8216;buy8217;

UBS has upgraded Mahindra amp; Manhindra to 8216;buy8217; from 8216;neutral8217; citing a strong outlook for profit margins despite falling tractor sales,as well as increased demand for utility vehicles.

The investment bank also expects a recovery in tractor sales to boost earnings before interest,taxes,depreciation and amortization EBITDA,a widely used gauge of operational profitability.

UBS raised its target price on the stock to 1,050 rupees from 780 rupees as part of its ratings change. Mahindra amp; Mahindra shares were up 0.1 percent in pre-open trade on Friday.

India8217;s biggest SUV manufacturer reported a 22 percent in July-September profit on Thursday,beating analyst estimates.

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