Hero MotoCorp shares fall after Jefferies downgrade, price target cut

Shares of two-wheeler manufacturer Hero MotoCorp Ltd

. opened lower on Thursday, December 18, after a global brokerage firm downgraded the stock and cut its price target.

Jefferies has downgraded Hero MotoCorp to 'Underperform' from 'Hold' and lowered its price target to ₹4,950 per share from ₹5,550 earlier. The revised target implies a potential downside of around 15% from current levels.

While the brokerage remains constructive on the overall two wheeler demand outlook, it said that the GST cut driven demand boost has faded during November and December.

It also pointed out that Hero MotoCorp's registration market share, which saw a seasonal improvement during the festive period, has slipped again in December.

Jefferies added that the stock has climbed nearly 40% so far this year, largely driven by valuation expansion. At 20x FY27 P/E, valuations appear expensive, according to the brokerage.

UBS had recently flagged a sharp drop in the company's market share in early December.

Hero's market share fell to 19% so far in December, compared to 35% in November 2025.

For the last 14 days, market share stood at 29%, well below the 35% recorded during the first three weeks of November.

Hero MotoCorp is currently tracked by 42 analysts, with 26 maintaining a 'Buy' rating, 10 recommending 'Hold' and six having a 'Sell' call on the stock.

Shares of Hero MotoCorp closed 2.22% lower on Wednesday at ₹5,814.50. The stock has remained flat over the past one month.