Bernstein cuts Bajaj Finance to ‘underperform’

Mumbai: New York-based research firm Bernstein has downgraded Bajaj Finance to underperform from outperform and slashed the target price by 64 per cent to Rs 1,740 as it believes that unsecured consumer finance business models would become challenging in the current pandemic environment. This is one of the biggest cuts in price target on an Indian blue-chip stock in recent times. The target price implies a downside of 32 per cent from current levels. The stock ended down 9 per cent atRs 2,546.45 on Friday. The stock touched a record high of Rs 4,923.30 and had gained 347 per cent in the last three years. But the stock has declined 48 per cent from its record high level. Bernstein's previous price target was Rs 4,820.