After a strong 7% rally yesterday, Bajaj Finance shares continued to surge to hit fresh record high levels on Friday, following the company\u2019s stellar Q4 profits. On Friday afternoon, the shares were trading up by more than 3.5% at Rs 2,131.6. The rise in shares come after a 7% surge yesterday. The company has reported a 60.5 percent on-year rise in net profit at Rs 720.95 crore for the fourth quarter ending March 2018 on the back of robust interest income and lower provisions due to improvement in bad loans. Morgan Stanley has maintained its overweight rating on the shares. Taking stock of the reported results, the firm said that the outperformance happened on account of higher than expected AUM growth. Notably, Assets under management (AUM) has increased by more than 33.5 percent on year to Rs 80,444 crore. Morgan Stanley notes that the higher revenue in the quarter was partially offset by higher operating expenses and provisions. Notably, in the quarter under review, \u00a0provisions came in at Rs 273.9 crore as compared to Rs 286.5 crore in the same period in previous fiscal. Further, sequentially, provisions increased 10.9 percent from Rs 246.8 crore. Morgan Stanley has a target price of Rs 2,000 on the shares. The firm\u2019s holding company Bajaj Finserv too has reported a near 30 percent rise in its Q4 net profit to Rs 685.5 crore on-year on the back of a strong growth in its insurance and non-banking ventures. Taking stock of the numbers, Nomura said that the operating parameters continue to remain best in class. Further, the firm notes that improved outlook is also visible in asset quality performance. Nomura has a buy rating on the shares with a target price of Rs 5,900. Bajaj Finserv shares were trading flat at Rs 5,580. Nomura\u2019s target price implies an upside of nearly 6% from the current market prices. Notably, for the holding company Bajaj Finserv income from operations rose 34.4 percent to Rs 13,561.64 crore in FY18. The Reuters poll had estimated income from operations to rise by 15.5 percent in FY18. The revenue from operations in FY17 was Rs 10,104.8 crore.