Sharekhan has maintained hold rating on Bajaj Auto with price target of Rs 1290, in its report dated September 3, 2009.

"We believe that the performance of its new launches is the key to its future growth and would also help the company to gain its lost market share. Also the threewheeler launches slated in the end of FY2010 and the healthy performance of its newly-launched motorcycles will drive further growth for the company. At the current market price, the stock is trading at 13.1x its FY2011E earnings of Rs 92.1 and enterprise value (EV)/earnings before interest, tax, depreciation and amortisation (EBITDA) of 9.7x. We maintain our Hold recommendation on the stock with price target of Rs1,290," says Sharekhan's report.