JP Morgan upgraded its rating on HDFC Bank to overweight, and Jefferies ranked the stock among its top sector picks, citing lower valuations following the nearly 26% decline in the shares in 2026. The stock fell 3.2% on Monday to Rs 731.8 as against the 16% drop in the Bank Nifty. A look at why the brokerages are bullish on the stock.
JP MORGAN
Price Target: Rs 1,010 Potential Upside: 38%
- Upgrade HDFC Bank to overweight from neutral; risk-reward turned favourable.
- Valuations at their lowest since the merger, and the core franchise strong See scope for a valuation re-rating as visibility on earnings acceleration over FY27-28 improves
JEFFERIES
Price Target: Rs 1,240 Potential Upside: 69%
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- Among top bank picks; valuations are attractive
- Valuations at 1.6 times FY27 estimated Price to Book, 13 times Price to Earnings, at discount to ICICI Bank and low premium to peers
- Clarity on board-issues, and rollover of CEO term/ chairman appointment can aid rerating