Global brokerages raise target price on ICICI Bank post Q2 results; sees up to 40% upside

Global brokerage firms such as CLSA, Goldman Sachs, Morgan Stanley, HSBC, and Credit Suisse maintained their rating but raised their respective 12-month target price on ICICI Bank post Q2 results, according to data collated by Zee Business TV.

The most aggressive target price was put out by CLSA which maintains a buy rating on ICICI Bank post Q2 results but raised its 12-month target price to Rs 1100 from Rs 1000 earlier that translates into an upside of 44 per cent from Rs 759 recorded on October 22.  

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Meanwhile, riding high on Q2 numbers,  ICICI Bank shares kicked off Monday with a bang as the banking stock was up over 8% and traded on 52-week high value of Rs 824.55 in the opening trade.

ICICI Bank announced its quarter ended September 30, 2021 results on Saturday. The Bank's profit after tax surged by 30% y-o-y to Rs 5,511 crore in Q2 2022.

Net interest income grew by 25% year on year. Net interest margin surged by 4%. The Core operating profit, profit before provisions and tax, excluding treasury income, grew by 23% year-on-year to Rs 9518 crore in the quarter ended September 30, 2021.

Also Read: ICICI Bank's profit after tax surges 30% to Rs 5,511 crore in Q2

On the asset quality front, the net NPA ratio declined from 1.16 per cent on June 30, 2021 to 0.99 per cent on September 30, 2021, the lowest since December 31, 2014.

Here’s what brokerages recommend on ICICI Bank post September quarter results:

CLSA: Buy| Raised target to Rs 1100 from Rs 1000

CLSA maintained its buy rating on ICICI Bank post Q2 results but raised its target price to Rs 1100 from Rs 1000 earlier.

The core Pre-provision operating profit (PPOP) growth of 21 per cent on a year-on-year (YoY) basis was driven by a margin beat. The net slippage was negligible with high recoveries which is a positive sign.

Goldman Sachs: Buy| Target raised to Rs 829 from Rs 773 earlier

Goldman Sachs which has a buy rating on ICICI Bank post Q2 results raised its target price to Rs 829 from Rs 773 earlier.

The underlying quality and the future visibility is better. Improving asset quality trends with the GNPL ratio declining is a positive sign.
 
Morgan Stanley: Overweight| Target raised to Rs 1025 from Rs 900

Morgan Stanley maintained its overweight rating on ICICI Bank post Q2 results but raised its target price to Rs 1025 from Rs 900 earlier.

HSBC: Buy| Target raised to Rs 950 from Rs 800

HSBC maintained its buy rating on ICICI Bank post Q2 results but raised its target price to Rs 950 from Rs 800 earlier.

Credit Suisse: Outperform| Target raised to Rs 900 from Rs 740

Credit Suisse maintained its outperform rating on ICICI Bank post Q2 results but raised its target price to Rs 900 from Rs 740 earlier.

Rising core profitability coupled with lower credit costs drive up RoE. The brokerage firm raised 2022-24E EPS by 6-9%.

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