Bajaj Finance Stock Surges 6% as Citi Predicts Bullish Outlook, Ups Target Price to Rs 8,150
Bajaj Finance shares have surged 6% following a bullish outlook by Citi, which expects the company to maintain stable loan growth. This growth is anticipated to be supported by an improvement in net interest margin of 3-5 basis points, thereby boosting profitability. Although credit costs are projected to rise slightly to 2%, the overall outlook for Bajaj Finance remains positive. With Citi upping its target price to Rs 8,150, investor confidence has been bolstered. The financial sector, particularly non-banking financial companies (NBFCs) like Bajaj Finance, is expected to see significant growth in the coming quarters due to improving economic conditions and increasing demand for credit. As a result, Bajaj Finance is well-positioned to leverage these trends and maintain its momentum. With its strong financial performance and robust business model, the company is poised for long-term success, making it an attractive investment opportunity in the financial services sector. Key factors to watch include the company's ability to manage credit costs and maintain its net interest margin, which will be crucial in determining its future profitability and growth prospects.
