Bajaj Finserv Shares Rise 2% as Jefferies Initiates Coverage with 'Buy' Rating

Bajaj Finserv shares rose 2% after Jefferies initiated coverage with a 'buy' rating and a target price of Rs 2,420. The brokerage expects core earnings to grow at a CAGR of 22% during FY25-28, driven by lower rates at Bajaj Finance, improving profitability at Bajaj Allianz Life Insurance, and profitable growth at Bajaj Allianz General Insurance. Jefferies notes that the entry of Jio Financial will have a limited impact.

Bajaj Finserv shares rose by 2% after Jefferies initiated coverage with a 'buy' rating and a target price of Rs 2,420. The brokerage firm expects core earnings to grow at a Compound Annual Growth Rate (CAGR) of 22% during FY25-28, driven by lower rates at Bajaj Finance, improving profitability at Bajaj Allianz Life Insurance, and profitable growth at Bajaj Allianz General Insurance [1].

Jefferies highlighted the stable profitability of Bajaj Allianz Life Insurance Company (BALIC) as a key driver of positive momentum. The brokerage anticipates a 22% CAGR in core earnings over the medium term, indicating strong growth potential. The entry of Jio Financial into the company is expected to have a limited impact on Bajaj Finserv's performance.

The positive outlook from Jefferies has bolstered investor confidence in Bajaj Finserv, leading to a 2% increase in share price. The brokerage's optimistic view is based on the company's diversified financial services, including life and general insurance, along with its strong subsidiaries.

References:

[1] https://www.etnownews.com/markets/stocks-to-buy-today-bajaj-finserv-jsw-infrastructure-and-more-article-152499077