Citi has maintained its Buy rating on Federal Bank, setting a target price of Rs 231, implying a 17% upside from the current market price of Rs 197.50. The brokerage highlighted an open 90-day positive catalyst watch, with expectations that the Q2 earnings will act as a trigger to restore investor confidence, following a business update that spooked the market.
Citi noted that Federal Bank’s credit growth momentum has been among the strongest compared to other banks, and it expects core Net Interest Margins (NIMs) to remain relatively stable. An additional trigger for the stock could come from the business strategy implemented by the new CEO, aimed at improving return on assets (RoA) and earnings visibility.
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