Bosch Shares Rally 5% Following UBS Upgrade to 'Buy

Bosch Ltd Stock Jumps 5% After UBS Upgrade to 'Buy'

Shares of Bosch Ltd surged as much as 5% on Friday following a major upgrade by global brokerage UBS, which changed its recommendation on the stock to 'Buy' from 'Sell'. The brokerage also significantly increased its target price for the company, citing a strengthened growth outlook resulting from recent portfolio changes.

The stock reached an intraday high of Rs 39,456 before trimming some gains, with the price trading 3.4% higher at Rs 38,845 in late morning trade. UBS raised its target price on Bosch to Rs 45,530 from Rs 27,920 earlier, implying a potential upside of about 21% from current levels.

According to UBS, the recent repositioning of Bosch's portfolio has enhanced the investment case for the company. The brokerage highlighted the acquisition of the Chassis Systems business (BCSI) as a key value driver and noted that recently announced joint ventures could provide additional upside. As a result, UBS reassessed Bosch's valuation, now valuing the company's core business at 35 times one-year forward EV/EBITDA, compared to its earlier methodology of 30 times price-to-earnings.