Synopsis:
Four Bank Stocks are in the Spotlight as Morgan Stanley Maintains Overweight, Equal Weight, and Underweight Ratings.
One of the leading brokerage firms, Morgan Stanley has given a new target price for stocks, reflecting its latest market outlook and sector analysis. This highlights the firm’s belief that companies have strong growth potential, driven by factors such as industry trends, technological advancements, and improving fundamentals, offering investors insights into potential opportunities.
Following are the list of stocks with new target price
1. HDFC Bank Ltd
Morgan Stanley has maintained its ‘Overweight’ rating on the stock, raising the target price of Rs. 1,225, with an upside of 25.51 percent from CMP of Rs. 976. Morgan Stanley has maintained an Overweight rating on HDFC Bank, citing steady average balance sheet growth. The brokerage highlighted that the bank’s average CASA deposit growth accelerated to 8.5 year-on-year, up from 6.1 YoY in the previous quarter, reflecting improving deposit momentum.
With the market capitalization of Rs. 14,97,422.88 crore, the shares of HDFC Bank Ltd is trading at Rs. 976, up by 0.26 percent from its previous day’s close price of Rs. 973.45 per equity share.
Financial Outlook
In June 2025, the HDFC Bank reported net interest income of Rs. 31,440 crores, up by 5.4 percent as compared to Rs.29,840 crores in Q1FY25, and down by 2 percent compared to Rs. 32,070 crore in Q4FY25.
Similarly, the company reported net profit of Rs. 18,160 crores in Q1FY26, it increased by 12.2 percent as compared to Rs. 16,170 crores in Q1FY25 and increased by 3.1 percent QoQ from Rs. 17,620 crores in Q4FY25.
2. Bank of Baroda Limited
Morgan Stanley has maintained its ‘underweight’ rating on the stock with the target price of Rs. 235, with a downside of 11.58 percent from CMP of Rs. 265.80. Morgan Stanley has maintained an Underweight rating on Bank of Baroda, despite noting strong sequential growth, indicating cautious sentiment on the stock relative to the broader market.
With the market capitalization of Rs. 1,37,558.23 crore, the shares of Bank of Baroda Limited is trading at Rs. 265.80, down by 0.30 percent from its previous day’s close price of Rs. 266.60 per equity share.
Financial Outlook
In June 2025, the Bank of Baroda reported net interest income of Rs. 11,435 crores in Q1FY26, it decreased by 1.4 percent as compared to Rs. 11,600 crores in Q1FY25 and increased by 3.76 percent QoQ from Rs. 11,020 crores in Q4FY25.
Similarly, the company reported net profit of Rs. 4,541 crores in Q1FY26, it increased by 1.9 percent as compared to Rs. 4,458 crores in Q1FY25 and decreased by 10 percent QoQ from Rs. 5,048 crores in Q4FY25.
3. IndusInd Bank Ltd
Morgan Stanley has maintained its ‘Equal-weight’ rating on the stock with the target price of Rs. 785, with an upside of 4.61 percent from CMP of Rs. 750.40. Morgan Stanley maintains an Equal-Weight rating on IndusInd Bank, noting that Q2 was a weak quarter. The brokerage expects a gradual earnings recovery post Q2 but retains the rating due to fair valuations.
With the market capitalization of Rs. 58,212.56 crore, the shares of IndusInd Bank Ltd is trading at Rs. 750.40, up by 1.50 percent from its previous day’s close price of Rs. 739.30 per equity share.
Financial Outlook
In June 2025, the IndusInd Bank Ltd reported net interest income of Rs. 4,640 crores in Q1FY26, it decreased by 14 percent as compared to Rs. 5,408 crores in Q1FY25 and increased by 52 percent QoQ from Rs. 3,048 crores in Q4FY25.
Similarly, the company reported net profit of Rs. 604 crores in Q1FY26, it decreased by 72 percent as compared to Rs. 2,171 crores in Q1FY25 and turnaround from loss of Rs. 2,329 crores in Q4FY25.
4. RBL Bank Limited
Morgan Stanley has maintained its ‘underweight’ rating on the stock with the target price of Rs. 175, with a downside of 36.60 percent from CMP of Rs. 276.05.
Morgan Stanley maintains an Underweight rating on RBL Bank, noting that gross loan growth accelerated to 14.0 YoY, up from 9.3 YoY in the previous quarter, reflecting improving lending momentum despite a cautious overall outlook.
With the market capitalization of Rs. 16,922.43 crore, the shares of RBL Bank Limited is trading at Rs. 276.05, up by 0.16 percent from its previous day’s close price of Rs. 275.60 per equity share.
Financial Outlook
In Q1 FY26, the company reported net interest income of Rs. 1,481 down by 5 percent from Rs. 1,563 in Q4FY25 and 13 percent from Rs. 1,700 in Q1 FY25. Profit rose to Rs. 200 cr, a 46 percent YoY decrease over Rs. 372 cr in Q1 FY25, but a 192 percent increase QoQ from Rs. 69 cr in Q4 FY25.
Written by Akshay Sanghavi
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