Why is Axis Bank stock being upgraded?

Axis Bank is upgraded due to abating concerns about operating pressure and asset quality, coupled with a favorable liquidity environment and attractive valuation.

What is the price target for Axis Bank stock?

The price target for Axis Bank stock has been set at ₹1,500, implying a favorable risk-reward ratio.

How does Axis Bank's valuation compare to its peers?

Axis Bank stock trades at a discount to peers like ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, presenting an attractive valuation opportunity.

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Axis Bank Stock: Favorable Risk-Reward

19 Nov

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Summary

Axis Bank stock has risen 11% in 12 months.
Stock trades at a discount to peers like ICICI and HDFC.
Analyst upgrades Axis Bank from Neutral to Buy.

Axis Bank's operating environment is improving, with concerns over asset quality gradually abating. Loan growth is expected to pick up, supported by a favorable liquidity environment. Industry data indicates stable or improving trends in credit stress, which could further aid retail asset quality.

The bank's stock has appreciated 11% in the last 12 months. It currently trades at a significant discount to its five-year average P/BV and to peers like ICICI Bank, HDFC Bank, and Kotak Mahindra Bank. This valuation gap suggests a favorable risk-reward scenario for investors.

Analysts have upgraded Axis Bank from Neutral to Buy, setting a price target of ₹1,500. This upgrade is based on revised EPS estimates and a forward-looking valuation multiple. The bank is considered better positioned than state-owned enterprises and mid-sized banks, despite potential downside risks like slower loan growth.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.