Bajaj Finance shares jump over 5% as Citi maintains 'Buy' on Q3 optimism, sees up to 17% upside for stock

Bajaj Finance share price surged over 5 percent in Thursday's trade after analysts at the brokerage Citi reiterated its 'Buy' rating on the stock.

The stock climbed to an intraday high of Rs 7,306.05 on the NSE, marking a 5.34 percent gain from its previous close. Over the past two sessions, Bajaj Finance shares have gained nearly 7 percent. The broader finance and NBFC sector also saw a positive movement, with the sectoral index rising 2.01 percent during the day.

Citi has set a price target of Rs 8,150 for Bajaj Finance, indicating a potential upside of 17.51 percent from Wednesday's closing price. The brokerage highlighted expectations of loan growth stability, supported by a 3-5 basis point (bps) positive bias in net interest margins (NIM).

"Key support is coming from segments like mortgage financing, sales financing, and new business ventures," Citi noted in its report. It also flagged a marginal rise in credit costs, estimated between 2.2 to 2.5 percent.