Jefferies Reaffirms ‘Buy’ Call on HDFC Bank After Sharp Price Drop

Global brokerage Jefferies has reaffirmed its bullish stance on HDFC Bank, describing the stock as a “screaming buy” after it fell roughly 25% year‑to‑date. The brokerage said the current valuation looks attractive and offers investors a compelling opportunity amid market volatility. :contentReference[oaicite:1]{index=1}

Valuation and Target Price

Jefferies has set a fresh target price of ₹1,240 for HDFC Bank’s shares, a level that implies a potential upside of around 64% from recent closing levels. The brokerage also sees an approximate 50% rise for the bank’s American Depositary Receipts (ADRs), targeting about $40 per ADR. :contentReference[oaicite:2]{index=2}

Recent Stock Performance

HDFC Bank’s share price has seen significant pressure this year, with a notable correction from its previous highs. According to market data, the stock has been trading at a discount compared to its past peak levels, reflecting broader market risk‑off sentiment and sectoral pressure. :contentReference[oaicite:3]{index=3}

Analyst Confidence Despite Volatility

Jefferies highlighted that the recent decline in HDFC Bank’s equity does not fundamentally change its long‑term prospects, given the bank’s strong market position, extensive branch network, and industry leadership as one of India’s largest private sector lenders. :contentReference[oaicite:4]{index=4}

Outlook and Investor Considerations

While Jefferies remains optimistic, analysts generally caution that investors should balance valuation opportunities with broader market risks, including geopolitical tensions and macroeconomic factors that have contributed to bank stock volatility. :contentReference[oaicite:5]{index=5}