What makes Jefferies bullish on private lender ICICI Bank? Check price target

ICICI Bank share price: Global brokerage firm Jefferies has tagged a buy rating on private sector lender ICICI Bank. It said that ICICI Bank is top picks across Indian financials, adding that the bank offers among the best risk-rewards across peers with superior growth, improved asset quality and higher ROEs.

Jefferies said that ICICI Bank is well poised to leverage on growth pickup in Indian Bank Credit as well as gain market share in times of tighter liquidity and higher rates.

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The bank has been able to ramp-up its unsecured lending business for retail loans as well as SME lending business which have helped improve net interest margin without raising asset quality risks.

Jefferies in its report said that ICICI Bank’s growth will have three drivers:

1. Micro Market that will target urban centre 

2. Local staff will work with pre-provision operating profit (PPOP) target rather than sales target 

3. Branches and staff will transition from sales to service centre 

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The report further stated that ICICI Bank will see 19 per cent profit Compound Annual Growth Rate (CAGR) over FY22-25. 

ICICI Bank Share Price Target By Jefferies: Rs1,150 

Shares of ICICI Bank on Friday, January 6, traded under pressure, declining more than 1 per cent to quote Rs 869 apiece on NSE and Rs 870 on BSE. The counter has slipped more than 5 per cent in the past 1 month.

Meanwhile, Zee Business panelist and market expert Sacchitanand Uttekar said that ICICI Bank last week cracked below the support level of Rs 900 and formed a classic bearish flat pattern. He said that on an Immediate basis the scrip will not see any rally as it has a firm resistance at Rs 900/ 910 levels. 

According to Uttekar, the dependable level for bullish view is Rs 840 apiece.

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