Bank Of Baroda Q2 Review: Brokerages Turn Bullish On Strong Numbers — Check Target Price

Investec offered a bullish outlook on Bank of Baroda, upgrading its rating from ‘hold’ to ‘buy’ while increasing the target price from Rs 250 to Rs 325.

The firm’s re-rating comes on the back of Bank of Baroda’s strong growth and return on assets, which were supported by low credit cost and an NII-led operating profit beat.

Similarly, Citi maintained a ‘buy’ rating on Bank of Baroda while hiking the target price from Rs 310 to Rs 350.

The brokerage firm described the quarter as an ‘all-round beat’, with net interest margins (NIMs) and lower credit cost being the two positive surprises. The NIMs were aided by an IT refund while credit costs remained low at 40 basis points.

UBS, too, hiked the target price on Bank of Baroda from Rs 280 to Rs 320 while maintaining a ‘buy’ rating on the counter.

UBS also highlighted Bank of Baroda’s September quarter earnings as a ‘strong’ one, with profit beat being led by lower provisions and higher NII.