On Tuesday, shares of HDFC Bank Limited gained nearly 3% to hit a new high of Rs 1,429.85 on NSE after research firm CLSA raised its price target on the stock from Rs 1,525 to Rs 1,700 per share while retaining the "buy" rating. The new price target shows 18% upside from current levels.
It said that the macro-environment has improved after lockdown, adding that the better use of data analytics is leading to lower retail stress against PAT (Profit After Tax) cycles.
The firm feels that in the medium term, OpEx efficiency still has room to improve and the private bank is one of its top picks.
"The bank's CEO transition has been smooth and the bank continues to work on its five-pillar strategy to drive growth targeting newer geographies or ecosystems and the bank is redefining systems or processes, hence the medium-term Opex efficiency still has room to improve. With lower asset quality risk, we increase our target price from Rs 1,525 to Rs 1,700," CLSA said.