Brokerages bullish on ICICI Bank, Axis Bank; see up to 25% upside - check price targets

ICICI Bank, Indian banks have performed considerably well in the second quarter of the current fiscal. While public sector banks are already firing on all cylinders, brokerages are also bullish on the private sector banks. 

Brokerages are bullish on ICICI Bank and Axis Bank, revising their price targets. Zee Business panellist Ashu Madan said that banking stocks are doing weel and can support the market. He added that Nifty50 components such as Kotak Mahindra Bank, Axis Bank, HDFC twins can be the outperformers.

ICICI Bank Share Price Target - Rs 1200

Brokerage house CLSA has maintained Buy rating with a price target of Rs 1200. 

It said that the country's second largest private lender is growing faster in the banking business on a low base. The net profit margins outlook is positive in a rising interest rate environment. 

The bank has broad-based growth pickup. Low branch additions with not holding back on operating expenditure is a positive aspect.

The brokerage said that the bank has pristine asset quality with 17 per cent return on equity.

Another brokerage house HSBC too has a positive view on ICICI Bank. It has set a price target of Rs 1100.

Shares of ICICI Bank traded in red, falling 0.70 per cent to quote Rs 913 apiece on NSE at 1 PM. ICICI Bank has yielded an impressive return of around 20 per cent in 2022 so far. The stock's 52-week range is Rs 943.25 - Rs 642.15. 

Axis Bank Share Price Target - Rs 1150

Brokerage firm Morgan Stanley has maintained an 'Overweight' on the third private lender. It has set a price target of Rs 1150. 

It said that loan demand is holding up well. The bank expects sustained market share gains, particularly in high margins segments. It said that margin expansion has upside leg over near term while deposit cost should catch up starting in Q4FY23.

The bank has no asset quality concerns as of now, Morgan Stanley said, adding that the credit cost could remain at below cycle averages in near term.

HSBC too is bullish on the counter as it maintained Buy rating with a price target of Rs 1075.

Shares of Axis Bank at 1 PM traded in positive territory, quoting Rs 859 apiece on NSE. 

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