Deutsche Bank upgraded Maruti Suzuki to buy from hold and raised its target price to 1,600 rupees from 1,100 rupees.
The bank sees earlier concerns on high levels of inflation, interest rates and widening of the gasoline-diesel price difference easing.
Says improving outlook for petrol vehicles and Maruti's strengthening position in diesel vehicles, key reasons for positive view.
Expects Maruti's domestic sales at 1.1/1.3 million vehicles in FY13/FY14 and expect EBITDA margin to expand 130 basis points (bps) to 8.8 percent in FY14.
Maruti shares up 0.26 percent at 1,372.70 rupees.