HDFC Bank upgraded to Conviction Buy from Buy at Goldman Sachs

Goldman Sachs keeps a Buy rating on HDFC Bank (HDB) with a INR 2,042 price target and added the stock to the firm’s regional Conviction List as the analyst sees return ratios bottoming out in Q2 of FY24 and improving in FY25. HDFC Bank has underperformed its closest peer, ICICI Bank (IBN), by a “significant” 100% over the last three years, bringing its valuations down to below historical mean, notes the firm, which believes that HDFC Bank will “see an inflection point as it moves ahead.”