ICICI Bank is also Morgan Stanley’s top pick.
Shares of ICICI Bank have risen 27% so far in 2024, comfortably outperforming the Nifty Bank index, which has gained 7.5% so far this year, having sharply corrected from its peak.
Morgan Stanley reiterated its “overweight” rating on ICICI Bank and raised its price target on the stock to ₹1,650 from ₹1,465 earlier. Morgan Stanley’s price target is the highest for ICICI Bank on the street.
The brokerage expects further re-rating of ICICI Bank’s shares as the power of compounding is at play, according to its note.
ICICI Bank’s outperformance so far has been driven by improved funding and underwriting franchise. The brokerage also expects the lender’s earnings to continue outperforming its peers aided by better delivery systems.
For the September quarter, ICICI Bank’s asset quality was the best in over a decade, while operating efficiency was the best in the last seven quarters.
ICICI Bank’s quarterly net profit of its subsidiaries was also at an all-time high during the quarter.
Out of the 50 analysts that have coverage on ICICI Bank, 45 of them have a “buy” rating on the stock, while the other five have a “hold” recommendation. No analyst has a “sell” recommendation on ICICI Bank.
Shares of ICICI Bank ended 0.8% higher on Monday at ₹1,268.6. The stock is 7% adrift of its recent record high of ₹1,362.
