Global brokerage firms see over 50% upside in this private lender in long term; here’s why

ICICI Bank, which has performed largely in line with benchmark indices, could well surpass Rs 1100 levels and hit a fresh 52-week high in the next 12 months as the private sector lender reiterated its aggressive stance on technology at its analyst meet.

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The most aggressive target price of Rs 1100 was put out by CLSA that translates into an upside of 53 per cent from Rs 716 recorded on 3rd December on the BSE.

The private lender highlighted that ICICI STACK, the core digital offering, has seen significant traction so far.

“Going forward, the bank plans to enhance business potential and capture growth opportunities by collaborating with fintechs for customer-specific solutions by providing comprehensive ecosystem-based solutions and most importantly, by targeting new-to-bank customers,” Nirmal Bang said in a note.

The brokerage firm that has a target price of Rs 884 expects the net earnings to be further enhanced as credit costs taper down going forward. It expects ICICI Bank to deliver ROA/ROE of 1.8%/15.3% by FY24E.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

CLSA: Buy| Target Rs 1100| Upside 53%

CLSA maintained its buy rating on ICICI Bank with a target price of Rs 1100. The management focus is shifting towards building infra for new-to-bank customers.
 
The global investment bank highlighted that the bank has successfully improved the granularity and quality of its earnings over the past 6-7 years.

The bank is ahead of its peers in digital initiatives and is also a new growth leader. The company remains one of our top picks in the sector, said the CLSA note.

Nomura: Buy| Target Rs 910| Upside 27%

Nomura maintained its buy rating on ICICI Bank post Analyst meets with a target of Rs 910. The global investment bank is of the view that the bank is fully geared to meet the challenges of digital disruption.
 
The bank has managed the asset quality blips well through both COVID-19 waves. “We continue to expect 15-16% ROE by FY23-24,” said the Nomura note.
 
Further re-rating for ICICI Bank will be contingent upon delivering steady EPS growth. The bank can deliver an EPS CAGR of 28% over FY21-24.
 
JPMorgan: Overweight| Target 825| Upside 15%

JP Morgan maintained its overweight rating on ICICI Bank with a target price of Rs 825.

Morgan Stanley: Overweight| Target Rs 1025| Upside 43%

Morgan Stanley maintained its overweight rating on ICICI Bank with a target price of Rs 1025.  

Jefferies: Buy| Target Rs 1000| Upside 39%

Jefferies maintained its buy rating on ICICI Bank with a target price of Rs 1000 post the analyst meet.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)