100% rally in 1 year! Global brokerages raise target price on Bank of Baroda post Q2

Global brokerages such as CLSA as well as Credit Suisse maintained their respective rating but raised their 12-month target price on Bank of Baroda Ltd post September quarter results. 

The most aggressive target price of Rs 140 was put out by CLSA on Bank of Baroda post Q2 results that translates into an upside of 40 per cent from Rs 100 recorded on 10 November.

See Zee Business Live TV Streaming Below:

The stock has been on buyers’ radar. Shares of Bank of Baroda rallied more than 100 per cent in the last 1 year compared to 50 per cent upside seen in the Nifty50.

Bank of Baroda, India’s second-largest public sector lender reported robust quarterly earnings for the second quarter of the financial year 2021-22 (Q2FY21).

The bank on Wednesday posted double-digit growth in profit and a marginal surge in net interest income, while its asset quality improved during the quarter.

Also Read: Bank of Baroda Q2 FY22 results: Profit surges nearly 25%, asset quality improves
https://www.zeebiz.com/market-news/news-bank-of-baroda-q2-fy22-results-p...

Bank of Baroda’s profit surged 24.4 per cent to Rs 2,088 crore in Q2FY22, as compared to Rs 1,678.6 crore in the same quarter a year ago.

The net interest income (NII) stood at Rs 7,566 crore, up 2.1 per cent year-on-year (YoY) as against Rs 7,507 crore in the corresponding quarter of the previous fiscal.  

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

CLSA: Buy| Target raised to 140 from 130

CLSA maintained its buy rating on Bank of Baroda post September quarter results but raised its target price to Rs 140 from Rs 130 earlier.

Bank of Baroda is a beneficiary of the corporate recovery cycle. Strong asset quality performance adjusted for SREI group.
 
We have seen some growth pick-up, said the note, and NII got impacted due to one-offs, said the note. The global investment bank expects credit costs to normalise to 120- 125bps by FY23CL
 
Morgan Stanley: Overweight| Target Rs 145

Morgan Stanley maintained its overweight rating on Bank of Baroda post Q2 results with a target price of Rs 145.

Credit Suisse: Outperform| Target raised to Rs 120 from Rs 100

Credit Suisse maintained the outperform rating on Bank of Baroda post Q2 results but raised its target price to Rs 120 from Rs 100 earlier.

We have seen growth picking up, and the asset quality remains healthy which is a positive sign. CET is healthy at 11.4%, & as growth picks up & credit costs moderate – Credit Suisse expects RoEs to improve by over 10 per cent.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)