Maintain BUY on Hero as (1) Hero has successfully defended market share in the 2W segment in the current downturn (2) The stock is trading at an attractive valuation of 15/14x FY20/21E; however, the extent of price hikes on BS-VI will delay the recovery in our view. We lower our target P/E multiple to 16x (vs. 18x earlier), which is in-line with its average historic trading multiple, to factor in a delayed recovery (2HFY21) and a slower than expected ramp up in the premium segment. Heros 3QFY20 EBITDA margin surprised at 14.8% despite weak volumes. However, the outlook over FY21 remains mixed as management expects a recovery only in 2HFY21 as customers get accustomed to price hikes (12-15%) on BS-VI models. Retain BUY with a revised TP of Rs 2,980 (16x on Dec-21 EPS).