By Malvika Gurung
Investing.com -- Despite a gloomy session on Dalal Street on Tuesday, PSU banking stocks are trading higher and have been on investors’ watchlists for the past 6 months.
The global research giant Morgan Stanley (NYSE: MS ) has hiked its target prices for three state-owned lenders, in a recent note provided to the media.
The investment banking major MS has maintained an overweight rating on two public sector banks - Bank of Baroda (NS: BOB ) and Bank of India (NS: BOI ), along with an equal-weight rating on the banking giant Punjab National Bank (NS: PNBK ).
Morgan Stanley is of the opinion that the ongoing recovery cycle has been benefitting the PSU banks, with BoB and BoI showcasing the best relative risk-to-reward ratio. Further, PSU stocks have trumped their cyclical and defensive counterparts on a YTD basis.
Bank of Baroda’s target price has been hiked by MS from Rs 195/share to Rs 220 apiece, an upside of 27% compared to the current share price, while Bank of India’s target has been increased to Rs 125 from Rs 95, an upside of 39.2%. For PNB, the global brokerage has raised its target price from Rs 40 to Rs 60 apiece.
On the country’s star PSU bank State Bank of India (NS: SBI ), MS has maintained an overweight call, with a target price of Rs 715/share, while the investment bank has held its underweight call on Canara Bank (NS: CNBK ), raising its target price from Rs 280 to Rs 345 apiece.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.