IDFC First Bank Target Price Raised, Bank of Baroda Cut After Q1 Results; Here's Why Brokerages Changed Their View

Brokerage firms have revised their outlook on two major banking stocks following the June quarter (Q1 FY27) earnings. CLSA and Nomura upgraded their outlook on IDFC First Bank, raising the stock's target price to ₹95, while several global brokerages reduced their target prices for Bank of Baroda despite retaining positive recommendations.

The revised targets come after both lenders announced their quarterly financial results over the weekend.

CLSA Upgrades IDFC First Bank to 'Outperform'

Global brokerage CLSA upgraded IDFC First Bank from 'Hold' to 'Outperform' and increased its target price from ₹73 to ₹95.

The revised target suggests an upside potential of nearly 19% from current market levels.

Brokerage Nomura also turned more optimistic, raising its target price from ₹85 to ₹95 after evaluating the bank's June quarter performance.

Why Brokerages Are Bullish on IDFC First Bank

According to CLSA, IDFC First Bank has made a strong recovery following the challenges linked to the Haryana-related incident.

Key positives highlighted by the brokerage include:

Deposits increased 18% year-on-year

CASA ratio improved to 51%, among the highest in the Indian banking sector

Improved deposit franchise

Strong operational performance

Reflecting this optimism, CLSA also increased its FY27 and FY28 Earnings Per Share (EPS) estimates by 9% and 17%, respectively.

Bank of Baroda Faces Target Price Cuts

While analysts continue to remain largely positive on Bank of Baroda, several brokerages have reduced their target prices after reviewing the bank's June quarter results.

The target revisions were primarily driven by:

One-time provisioning impact

Lower fee income

Pressure on medium-term profitability

Latest Brokerage Views on Bank of Baroda

Citi

Rating: Buy

Target Price: Reduced from ₹340 to ₹310

Macquarie

Rating: Buy

Target Price: Reduced to ₹310

JPMorgan

Rating: Overweight

Target Price: Reduced to ₹315

HSBC

Rating: Hold

Cited concerns over medium-term return ratios.

Analysts Still Positive on Bank of Baroda

Despite the lower target prices, investor sentiment remains constructive.

According to Bloomberg-tracked analyst data:

Around 75% of analysts continue to recommend 'Buy' on Bank of Baroda.

Most brokerages believe the bank's long-term fundamentals remain intact despite short-term earnings pressure.