The shares of Bharat Forge Ltd., Ramkrishna Forgings Ltd. and GNA Axles Ltd. increased as heavy truck sales increased in the United States
According to a statement from FTR Transport Intelligence, orders for Class 8 trucks in the US have tripled year over year, up 2.8% from the previous month to 44,000 units in February 2021. Orders for the past 12 months totaled 3.56 lakh units.
“The fleets will continue to place orders to purchase trucks until the end of the year, as soon as they are available,” the statement said. Adding this year will be robust for Class 8 sales.
The world’s leading premium truck manufacturer Paccar Inc expects class 8 retail stores to be between 2.5 and 2.8 lakh in 2021, up from previous expectations of 2.3, according to a release from Emkay Global to 2.7 lakh. The company expects economic activity to pick up, strong backlog, robust e-commerce segment, and replacement demand to drive growth in FY21.
“Our positive view is supported by Bharat Forge’s leadership position in automotive forgings, focus on diversification and an expected recovery in core segments,” Emkay said in a February 22nd release.
Bharat Forge shares were up 2.1% in early trading on Wednesday, to 650 rupees apiece. The stock is available for the third session in a row.
- Of the 31 analysts who track the company, 14 have a buy rating, nine recommend a hold, and eight recommend a sell, according to Bloomberg data.
- The stock exceeded its 12-month consensus price target of 636.7 rupees on Wednesday.
Ramkrishna Forgings shares rose 4.3% to 589.7 rupees apiece – their highest level in a month. The share is available for the second day.
- Of the four analysts who track this company, three recommend a buy rating and one recommend a sell.
- The stock is trading 9% higher than its 12-month consensus price target of Rs 526.
The shares of GNA Axles even rose 2.7% to 400.3 rupees apiece.
- All four analysts tracking the stock suggest a buy.
- The average of Bloomberg’s 12-month target price implies an uptrend of 11.5%.