Axis Bank shares in Monday's trade (September 2) traded with minor gains even as Nifty marked a new high today. At the last count, shares of the private sector lender were up 0.4 per cent at Rs 1,180.15 per share on the BSE.

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At the day's high, the stock scaled a high of Rs 1,186.3 per share on the BSE. The stock on July 12 this year hit its all-time high price of Rs 1,339.55 per share.

The global brokerage has maintained their 'buy' call on the stock with a raised target of Rs 1,250, implying gains of over 6 per cent from the previous close. Previously, the brokerage pegged the target at Rs 1,150 apiece.

Sectoral headwinds as well as weak Q1 has led to the recent underperformance of the stock, added the brokerage. The stock on a year to date basis has underperformed the headline Nifty index and soared just over 7 per cent.

The brokerage anticipates near-term weakness for the stock but structural changes will support the lender's metrics going forward, added the brokerage.

Also, for a re-rating, the stock requires stable credit quality and growth. Valuation wise, the stock appears reasonable as the discount to peers has increased.