Bajaj Finance Stock Surges 6%: Citi Ups Target Price to Rs 8,150 on Strong Loan Growth Outlook
Bajaj Finance shares have seen a significant surge of 6% following a bullish outlook from Citi, which anticipates the company to maintain stable loan growth. This growth is expected to be supported by a 3-5 basis point improvement in net interest margin, leading to a boost in profitability. Although credit costs are projected to rise slightly to 2%, the overall outlook remains positive, with Citi upping the target price to Rs 8,150. This upgrade suggests a potential for further growth in the financial services sector, particularly in lending and financing. With the Indian economy showing signs of recovery, Bajaj Finance is well-positioned to capitalize on the increasing demand for credit and financial products, thereby driving its stock price higher. As the company continues to expand its market reach and diversify its product offerings, investors are likely to remain optimistic about its future prospects, making it an attractive option for those looking to invest in the financial sector. Key factors to watch include loan growth, net interest margin, and credit costs, as these will be crucial in determining the company's ability to meet its growth targets.
