India's IDFC First Bank jumps to 9-month high after Investec sets price target

Investec

01/07/2025 07:05

** Shares of IDFC First Bank IDFB.NS rise as much as 4.34% to 76 rupees, their highest level since September 30, 2024

** Investec upgrades the lender's stock to "buy" from "hold", raising its target price to a Street-high of 90 rupees from 65 rupees, implying a potential upside of 24.4%

** Brokerage expects a 29% CAGR in pre-provision operating profit, a metric to measure core profitability, between fiscal 2025 and 2028, the highest among Indian banks

** Sees gains from a 90-basis-point decline in credit costs due to easing liquidity and improvement in asset quality

** The average rating of 16 analysts tracking IDFB is "buy"; the median price target is 72 rupees, according to data compiled by LSEG

** IDFB shares are up 15.4% in 2025 so far outpacing the 12.5% rise in Nifty bank index .NSEBANK, exchange data shows

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))