HDFC Bank Brokerages Retain Buy Calls, Cut Targets

shares remain under the spotlight after Managing Director and CEO Sashidhar Jagdishan decided not to seek reappointment when his current term ends in October 2026. While brokerages have largely retained their bullish stance on the stock, several have lowered their target prices to factor in increased uncertainty around the leadership transition and the bank’s future strategic direction. Jefferies retained its Buy rating but cut the target price to Rs 880 from Rs 1,050, while reducing its FY27-29 earnings estimates by 3% each. ICICI Securities also maintained its Buy call but lowered its target to Rs 920 from Rs 1,020, citing higher succession-related uncertainty. Axis Capital remained more constructive, retaining its Buy rating with a target price of Rs 1,030. Brokerages believe the leadership change could affect deposit mobilisation, fee income, margins and the bank’s overall growth trajectory in the near term. At the same time, HDFC Bank’s relatively compressed valuations and recent underperformance continue to provide some support to the bullish view. Investors are now likely to focus closely on the bank’s succession process, the credibility of the new leadership and whether the incoming CEO can address the lender’s post-merger growth and profitability challenges.