Why is Jefferies upbeat on Bandhan Bank stock? Check share price target

Bandhan Bank Share Price Nse: Shares of Bandhan Bank Ltd, NSE: BANDHANBNK slumped on Thursday, December 22, tracking weak sentiment in the domestic equity market. The stock opened at Rs 247.95 on NSE. The selling pressure dragged it to day's low of 227.60, tanking more than 6 per cent.

Global Brokerage firm Jefferies has recommended a 'buy' rating on Bandhan Bank with a target price of Rs 340 .

It noted that this is the company's second positive non-performing loan(NPL)-recovery event after Rs 9.2 billion received from CGFMU (Credit Guarantee Fund for Micro Units) & another Rs15-20 billion can be expected in 1HFY24.

"This improves asset quality outlook & values are attractive at 1.8x FY24 adj PB," the brokerage firm added.

Meanwhile, Zee Business panelist and technical analyst Simi Bhaumik recommended a buy on the counter with price target of Rs 255 to 256 and stop loss of Rs 239.

The private lender yesterday informed that it received a binding bid of Rs 801 crore from an Asset Reconstruction Company (ARC) for its written-off portfolio. The bank received the offer on a security receipts consideration basis, for the written-off portfolio with an outstanding of Rs 8,897 crore.

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The lender in an exchange filing said, "The Bank shall go for bidding as per Swiss challenge method and decision of sale shall be taken as per extant guidelines governing Swiss challenge method and the relevant Policy of the Bank."

Bandhan Bank Share Price History NSE

The private lender's stock has delivered a negative return of 5 per cent in 2022 so far as per NSE. At the current level, the company has a market cap of Rs 38.80 thousand crores. The stock's 52-week range is Rs 349.55 - Rs 209.55.

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