Shares of Bank of Baroda rose around 2% in Wednesday’s session even as HSBC trimmed its target price amid a cautious outlook on the banking sector.
The stock gained 2.00% to Rs 252.40, up Rs 4.95 from its previous close of Rs 247.45. During the session, it traded in a range of Rs 250.40 to Rs 256.20, taking its market capitalization to approximately Rs 1.31 lakh crore. The company currently trades at a price-to-earnings ratio of 6.70 with a dividend yield of 3.31%.
HSBC maintained a ‘buy’ rating on the stock but reduced its target price to Rs 275 from Rs 340 earlier. The brokerage highlighted that the ongoing Middle East conflict could impact demand, growth, and margins across financial institutions.
According to HSBC, liability-side pressures have started to emerge, while asset-side stress could also develop across multiple lending segments going forward. The brokerage has cut its estimates for loan growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious outlook, HSBC continues to maintain a positive stance on select PSU banks, including Bank of Baroda.
As of Wednesday’s session, the stock remained in focus with steady buying interest.
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