IDFC First Bank shares downgraded by UBS, price target cut on expensive valuations

Shares of IDFC First Bank Ltd. declined on Wednesday, November 19, as brokerage firm UBS downgraded the stock and cut its price target as well.

UBS has downgraded its rating on IDFC First Bank to "sell" from "neutral" and has reduced its target price to ₹75 per share from its previous ₹80 apiece. This implies a downside of 6.2% from its previous closing price of ₹80.11 per share.

The brokerage cites a modest upside to IDFC First Bank's Return on Assets (RoA), limited improvement in its credit costs, and also cites expensive valuations among other factors as some key reasons behind the downgrade.

UBS has also lowered its Earnings Per Share (EPS) estimate for FY26 and FY27 to 8% and 5%, respectively for IDFC First Bank.

Credit cost to see limited improvement

Ever since its September