Jefferies cuts HDFC Bank share price target but retains Buy after CEO opts out of new term. Here’s why
Investment firm Jefferies has lowered its price target for HDFC Bank following the announcement that CEO Sashidhar Jagdishan will not seek a term extension. Analysts are monitoring the situation for potential leadership turnover and have identified several internal and external candidates for the role.
Why it matters
As India's largest private lender, HDFC Bank's leadership transition is a significant event for the Indian financial sector and investor confidence.
Wall Street major Jefferies has slashed the target price of HDFC Bank shares to Rs 880 from Rs 1,050 per share, forecasting a fresh upside of 22% from current levels after the lender announced that its CEO Sashidhar Jagdishan won't seek extension beyond his term that ends on October 26.“We will watch out if this leads to an exit among senior leaders of the bank. This can impact business and performance in the near term,” analysts at the firm said.The brokerage said its conversations with investors suggest they are comfortable with a leadership change, but believe the appointment of former leaders from PSU banks should be avoided as it could complicate the transition.Also read: HDFC Bank shares after Jagdishan: What lies ahead for the country’s largest private lender?Who can become new HDFC Bank CEO?Jefferies sees Kaizad Bharucha, HDFC Bank's Deputy Managing Director who leads corporate, business banking and retail assets,…
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