TVS Motor is on the rise; it had hit a new high yesterday at Rs.147.60 and today too, it hit a new high at Rs.148.

The stock is up after an FII, Bank of America Merrill Lynch (BoAML) put out a report,  upgrading its rating on the stock to buy from underperform with a target of Rs 200/share.

In the report BoAML has stated that the company is best poised to grow in volume with its launches lined up in the current fiscal, supporting better operating ratios and healthier balance sheet. BoAML is also optimistic that scooters and motorcycles, where it is near absent in the commuter segment and diesel three wheelers, where it has not participated so far along with exports will drive 17% sales ahead of peers. It also expects the two-wheeler maker’s margins to break out of historical range of 5.5-6% and raises margin assumptions by 100-250 bps to 7.1-8.7%.

BoAML has said that the stock is likely to re-rate on high earnings certainty higher earnings certainty and superior growth prospects with 61% EPS CAGR, faster than its peers.