UBS has upgraded Bank of Baroda (BoB) to a ‘Buy’ rating and raised the target price to ₹290 per share, implying a potential upside of nearly 22% from the current market price of ₹237.50. The global brokerage cited a stable outlook, attractive valuations, and controlled credit costs as key drivers for the revised stance.
According to UBS, the public sector lender is likely to face lesser net interest margin (NIM) pressure compared to its private sector peers. The brokerage estimates loan growth of around 12% over FY25–FY27, alongside a modest compression in NIMs. Additionally, return on assets (RoA) and return on equity (RoE) are projected to reach 0.9% and 13%, respectively, by FY26–27.
With credit costs expected to remain under control, UBS believes Bank of Baroda is well-positioned to deliver healthy operating performance, making it a compelling value proposition in the public sector banking space.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.