Citi has raised the target price on HDFC Bank to Rs 1900. They have raised the FY22 and FY23 net profit estimates by 2-3 percent. They expect a strong earnings growth of 24 percent CAGR over the next three years, and an average RoE of 18 percent.
The reason they are positive is because they believe that HDFC Bank’s recent underperformance both to the Nifty and the Bank Nifty as well as its recent concerns are overdone. They expect most of the things to get reversed from the second quarter of FY22.
So, on back of all this, they have opened a 90-day positive catalyst on the stock and Citi has raised the target price now to Rs 1900 versus an earlier target of Rs 1800 on the stock.
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