Bajaj Finance gets target price hike from Jefferies as credit costs seen falling, shares rise

Jefferies raises target price on Bajaj Finance to Rs 8,600 from Rs 8,000

Jefferies has raised its target price on Bajaj Finance to Rs 8,600 from Rs 8,000, citing improving credit quality and a decline in credit costs. The brokerage firm expects Bajaj Finance's asset quality to improve in the coming quarters as the economy recovers from the Covid-19 pandemic.

Jefferies said in a note to clients, "We believe that Bajaj Finance is well-positioned to benefit from the improving economic environment. The company's strong balance sheet, diversified loan book, and experienced management team should enable it to navigate the challenges posed by the pandemic."

Bajaj Finance shares rise on Jefferies' target price hike

Shares of Bajaj Finance rose by over 2% in early trade on Monday, following Jefferies' target price hike. The stock was trading at Rs 7,950, up by 2.25% at 9:45 AM.

Bajaj Finance is one of the leading non-banking financial companies (NBFCs) in India. The company offers a wide range of financial products and services, including loans, mortgages, and investments.

Key takeaways:

• Jefferies has raised its target price on Bajaj Finance to Rs 8,600 from Rs 8,000.
• The brokerage firm expects Bajaj Finance's asset quality to improve in the coming quarters.
• Bajaj Finance shares rose by over 2% in early trade on Monday.