 "ICICI Bank rallies on brokerage upgrade")
Shares of ICICI Bank rallied 6% to Rs 322 on the NSE, erasing its entire past three-week losses, after domestic brokerages upgraded the stock with ‘buy’ rating on expectations of improvement in asset quality going forward.
The stock opened at Rs 306 and touched a high of Rs 323 on the NSE. The counter has seen huge trading activity with a combined 13.93 million shares already changed hands till 1029 hours against an average around 12.5 million shares that were traded daily in past two weeks on the NSE and BSE.
The stock hit a six-month low of Rs 297 on Monday, during intra-day trade and fallen over 20% from its 52-week high of Rs 393 touched on January 28, 2015.
Going forward, the management sees asset quality stabilising, with stressed asset formation to remain significantly lower in FY16 as compared to FY15.
“We reiterate our Buy recommendation with a target price of Rs 397 per share. We feel the next couple of quarters could be challenging. However, positive macro tailwinds and likelihood of easing rates cycle make us confident of the bank,” Antique Stock Broking said in result preview.
“Due to the recent correction in the stock price coupled with likely asset quality improvement and stable operating performance for the bank in FY16, we revise our rating on the stock to Outperform from Neutral with a revised price target of Rs 390,” said Amit Jain & Kanika Thacker, analysts at Sunidhi Securities & Finance said.
Jignesh Shial, analyst at IDBI Capital said, according to considering recent price correction, the stock provides attractive risk reward opportunity with rising share of retail business, steady margins and improving return ratios (around 1.9% ROAs (return on assets) and around 15.2% ROAEs (return on average equity) by FY17E).
Accordingly, we have revised our target price upwards to Rs 418 against Rs 400 previously. We maintain Buy rating on the stock, said analysts.
The stock opened at Rs 306 and touched a high of Rs 323 on the NSE. The counter has seen huge trading activity with a combined 13.93 million shares already changed hands till 1029 hours against an average around 12.5 million shares that were traded daily in past two weeks on the NSE and BSE.
The stock hit a six-month low of Rs 297 on Monday, during intra-day trade and fallen over 20% from its 52-week high of Rs 393 touched on January 28, 2015.
Going forward, the management sees asset quality stabilising, with stressed asset formation to remain significantly lower in FY16 as compared to FY15.
“We reiterate our Buy recommendation with a target price of Rs 397 per share. We feel the next couple of quarters could be challenging. However, positive macro tailwinds and likelihood of easing rates cycle make us confident of the bank,” Antique Stock Broking said in result preview.
“Due to the recent correction in the stock price coupled with likely asset quality improvement and stable operating performance for the bank in FY16, we revise our rating on the stock to Outperform from Neutral with a revised price target of Rs 390,” said Amit Jain & Kanika Thacker, analysts at Sunidhi Securities & Finance said.
Jignesh Shial, analyst at IDBI Capital said, according to considering recent price correction, the stock provides attractive risk reward opportunity with rising share of retail business, steady margins and improving return ratios (around 1.9% ROAs (return on assets) and around 15.2% ROAEs (return on average equity) by FY17E).
Accordingly, we have revised our target price upwards to Rs 418 against Rs 400 previously. We maintain Buy rating on the stock, said analysts.