Axis Bank share price hits lifetime high; analysts, brokerage bullish - check target

Axis Bank Share Price: The stocks of private lender Axis Bank on Wednesday, December 21, hit a lifetime high on the back of strong recommendations by analysts and domestic brokerage firm Sharekhan. Shares of Axis Bank, NSE: AXISBANK, opened at Rs 953.10 apiece on NSE, up marginally by 0.44 per cent from the previous close of Rs 949.75.

Axis Bank has been the best-performing stock among private lenders this year. Analysts and brokerage houses are bullish on the country's third largest private bank. The stock has gained nearly 40 per cent in 2022.

Zee Business panelist and market expert Kunal Saraogi recommended buying Axis Bank shares for a price target of Rs 975/990 and keeping the stop loss at Rs 945.

Chandan Taparia from Motilal Oswal also recommended buying Axis Bank shares. He said that the chart set up and momentum is very good.

Taparia said that one can also trade in derivatives in Axis Bank. He said that the premium of Rs 960 Call option could double from the current level. The premium of 960CE quoted 9 at the time of filing this report.

Domestic brokerage firm Sharekhan has maintained a Buy on Axis Bank and raised the price target to Rs 1140.

The brokerage firm said that Axis Bank has strengthened its franchise (both on the assets as well as liability side) over the past few years to deliver sustained improved performance over the medium term. It said that Axis Bank is now emerging as structurally a stronger franchise, which will continue to deliver consistent performance.

"On the back of this, the current valuation gap (Axis Bank trading at 1.4x its FY2025E Core BV) vs. Its core peer (ICICI Bank at 1.9x its FY2025E Core BV) is expected to narrow down over the next 6-12 months," the brokerage firm said.

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Sharekhan said that branch expansion will further accelerate growth. Also, the bank has started gaining market share on the Current Account and Savings Account (CASA) front, aided by leveraging digital ecosystem, focusing on corporate salary account acquisition, and cross-sell liability products to existing clients. Further, Citi Bank’s acquisition is expected to improve CASA ratio by 200bps.

Sharekhan sees the bank emerging as stronger in this leg of upcycle and valuation multiple inching higher closer to its peers.

Axis Bank is trading around 54 per cent higher from its 52-week low of Rs 618.25 apiece that it had hit on June 23, 2022. At current levels, the stock has a market cap of Rs 2.92 lakh crore.

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