HDFC Bank share price targets: What Jefferies, Nomura, Morgan Stanley say as Anup Bagchi named CEO
HDFC Bank target price: Nomura and Jefferies suggested a 'Buy' recommendation on HDFC Bank with targets of Rs 950 and Rs 880, respectively.
- Oct 5, 2026,
- Updated Oct 5, 2026 10:23 AM IST
HDFC Bank Ltd shares received a thumbs-up from domestic and foreign brokerages after the most-valued private lender named Anup Bagchi as its next MD & CEO, with brokerages viewing the appointment as a long-term positive for the lender, given his strong leadership track record and experience across the BFSI sector.
Nomura and Jefferies suggested a 'Buy' recommendation on HDFC Bank with targets of Rs 950 and Rs 880, respectively. Morgan Stanley assigned an 'Overweight' rating with a target of Rs 1,025. IIFL Securities suggested 'Buy' with a target of Rs 880, while MOFSL finds the stock worthy of Rs 925 and ICICI Securities sees it at Rs 920.
Jefferies said the development provided clarity on HDFC Bank's management succession and strategic direction. Timely changes to the team and opportunities from improving retail deposit growth, better cross-sell fees and calibrated re-risking of the loan mix will aid earnings and re-rating from an attractive 1.4 times FY28 adjusted book value per share, the global investment bank said, noting that it will also aid other banks' valuations.
"Since 18 March 2026, HDFC Bank's valuation gap with peers, including ICICI Bank, Kotak Mahindra Bank, Axis Bank, and SBI, has been disrupted. With CEO succession now behind, a timely team reorg could strengthen execution and support a re-rating. Maintain Buy call with PT of Rs 880 based on 1.6x Sep 2028E PB; ADR PT at Rs 28," Jefferies said.
Nomura said it now includes HDFC Bank in its top banking sector picks. "The RBI's approval of Anup Bagchi as MD & CEO from October 27 removes the succession overhang on which we had excluded it, and an external appointment opens scope for a strategic reset. Our top picks are HDFC Bank, Kotak Mahindra Bank and ICICI Bank among large banks, and IDFC First and IndusInd among mid-tier banks (all rated Buy)," it said.
MOFSL said anew leadership team, alongside an improvement in growth and earnings trajectory, should improve investor sentiment. It estimated HDFC Bank to deliver an improved earnings performance from FY28 onward, while expecting return on asset (RoA) for the bank to sustain at 1.7 per cent, factoring in the potential cut in insurance commissions.
Nuvama Institutional Equities said blending the distinct ICICI Bank Ltd and HDFC Bank Ltd organisational DNA could pose near-term challenges, with a potential management rejig across businesses. "Thus rebuilding the leadership team, sustaining growth, bolstering governance and restoring stakeholder confidence would be key priorities," the brokerage said.
Nuvama noted HDFC Bank's leadership reset, along with Kotak Mahindra Bank's, within a week clears a prolonged overhang, which, coupled with strong growth and margin tailwinds, sets the stage for large private banks' re-rating. It suggested a higher target of Rs 950 for the lender compared with Rs 75 earlier.
HDFC Bank Ltd shares received a thumbs-up from domestic and foreign brokerages after the most-valued private lender named Anup Bagchi as its next MD & CEO, with brokerages viewing the appointment as a long-term positive for the lender, given his strong leadership track record and experience across the BFSI sector.
Nomura and Jefferies suggested a 'Buy' recommendation on HDFC Bank with targets of Rs 950 and Rs 880, respectively. Morgan Stanley assigned an 'Overweight' rating with a target of Rs 1,025. IIFL Securities suggested 'Buy' with a target of Rs 880, while MOFSL finds the stock worthy of Rs 925 and ICICI Securities sees it at Rs 920.
Jefferies said the development provided clarity on HDFC Bank's management succession and strategic direction. Timely changes to the team and opportunities from improving retail deposit growth, better cross-sell fees and calibrated re-risking of the loan mix will aid earnings and re-rating from an attractive 1.4 times FY28 adjusted book value per share, the global investment bank said, noting that it will also aid other banks' valuations.
"Since 18 March 2026, HDFC Bank's valuation gap with peers, including ICICI Bank, Kotak Mahindra Bank, Axis Bank, and SBI, has been disrupted. With CEO succession now behind, a timely team reorg could strengthen execution and support a re-rating. Maintain Buy call with PT of Rs 880 based on 1.6x Sep 2028E PB; ADR PT at Rs 28," Jefferies said.
Nomura said it now includes HDFC Bank in its top banking sector picks. "The RBI's approval of Anup Bagchi as MD & CEO from October 27 removes the succession overhang on which we had excluded it, and an external appointment opens scope for a strategic reset. Our top picks are HDFC Bank, Kotak Mahindra Bank and ICICI Bank among large banks, and IDFC First and IndusInd among mid-tier banks (all rated Buy)," it said.
MOFSL said anew leadership team, alongside an improvement in growth and earnings trajectory, should improve investor sentiment. It estimated HDFC Bank to deliver an improved earnings performance from FY28 onward, while expecting return on asset (RoA) for the bank to sustain at 1.7 per cent, factoring in the potential cut in insurance commissions.
Nuvama Institutional Equities said blending the distinct ICICI Bank Ltd and HDFC Bank Ltd organisational DNA could pose near-term challenges, with a potential management rejig across businesses. "Thus rebuilding the leadership team, sustaining growth, bolstering governance and restoring stakeholder confidence would be key priorities," the brokerage said.
Nuvama noted HDFC Bank's leadership reset, along with Kotak Mahindra Bank's, within a week clears a prolonged overhang, which, coupled with strong growth and margin tailwinds, sets the stage for large private banks' re-rating. It suggested a higher target of Rs 950 for the lender compared with Rs 75 earlier.