Brokerages Nomura and HSBC, both, have initiated coverage on Ather with “buy” ratings, and price targets of ₹458 and ₹450 per share respectively.
Nomura said electric vehicles will lead the next decade for growth for the two-wheeler industry and Ather Energy could be a significant beneficiary of this.
The brokerage expects EV penetration in two-wheelers to rise from 6% in previous financial year to 19% by financial year 2030. It added that internal combustion engine (ICE) volumes is likely to peak that period.
HSBC said Ather Energy is the fourth-largest EV two-wheeler manufacturer with 14% market share. Its product quality and tech leadership is difficult to replicate even for rivals with deep pockets, the brokerage said.
The stock price will be driven by its relative performance, not industry growth, HSBC said.
The brokerage added that the company’s acceleration in EV penetration is a significant upside risk for earnings and valuations.
Ather Energy’s revenue is likely to grow at a Compounded Annual Growth Rate (CAGR) of 47% between financial year 2025-2028, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) may breakeven by the fourth quarter of the next financial year, HSBC said.
All four analysts that have coverage on the Ather Energy stock have “buy” ratings on it.
Ather Energy shares ended the previous session 2.4% higher at ₹347 apiece, just above its IPO price of ₹321 per share. The stock has gained 14.8% this year, so far.
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