Bajaj Finance shares soar 5% on Citi’s bullish outlook; target price at Rs 8,150
Bajaj Finance shares surged 5.8% on Thursday to a high of Rs 7,272.95 on the BSE following a positive outlook report by global brokerage firm Citi, which maintained a ‘buy’ rating on the stock with a price target of Rs 8,150 per share, citing a 90-day positive catalyst watch.
The target price indicates an upside potential of 17.5% in the stock from its previous closing price.
The financial services major is expected to achieve loan growth stability, with a positive net interest margin (NIM) bias of 3-5 basis points, further supporting its profitability. Despite a marginal rise in credit costs anticipated at 2.2-2.5%, the company’s robust fundamentals remain intact, said Citi in its note.
Furthermore, Citi projects strong growth in assets under management (AUM), with a 6% quarter-on-quarter (QoQ) increase and a substantial 27% year-on-year (YoY) growth, which is attributed to contributions from mortgage financing, sales financing, and new business ventures.
Citi also emphasized that the management transition update will play a critical role in shaping investor sentiment moving forward, as leadership changes are often closely scrutinized in the financial sector.
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