Federal Bank shares hold steady despite brokerage target price upgrades

Shares of Federal Bank remained steady at Rs 148.25 each on the NSE on Tuesday despite several top brokerages hiking their target prices. The bank’s stock began the day at Rs 150.75 apiece in the ongoing trading session, while closing at Rs 148.55 per share on Monday.

Morgan Stanley maintained an ‘Equalweight’ rating for the bank, while raising its target price to Rs 160 from Rs 145. JP Morgan also revised its target price upward to Rs 170 from Rs 150, while preserving an ‘Overweight’ rating. Citi remained bullish with a ‘Buy’ rating, elevating the target price to Rs 170 from Rs 160.

The adjustments in target prices follow a robust Q2 performance by Federal Bank. The bank reported a standalone profit of Rs 935.82 crore, marking a significant year-on-year increase of 35.5%. The income revenue also swelled by 33.5% to reach Rs 6,185.7 crore.

Furthermore, the bank’s net interest income (NII) saw growth of 16.68% from Q2FY23, reaching Rs 2,056 crore in Q2FY24.

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