By Malvika Gurung
Investing.com -- The global research giant Morgan Stanley (NYSE: MS ) has maintained its overweight call on the private sector lender ICICI Bank (NS: ICBK ) and has set a target price of Rs 1,250/share on the stock, which lies among its top picks.
At a closing price of Rs 933.6 apiece, Morgan Stanley pegs an upside of 34% on ICICI Bank, while Jefferies (NYSE: JEF ) has a target price of Rs 1,150/share and a Buy rating on the stock, which is also among one of its top picks.
According to Morgan Stanley, the private bank’s strong digital capabilities have aided it to improve market share in segments with higher margins, with further room for improvement.
The mega-cap bank has accelerated new-to-bank customer acquisitions through digital assets, and the research giant sees potential for significant operating leverage over the medium term, backed by the rising competitive intensity and increased tech/employee costs, the note added.
The global brokerage pegs continued re-rating for ICICI Bank over the upcoming years.
Further, Jefferies believes that the bank is focused on a smoother customer journey, digitisation and network expansion, cited a syndicated feed.
Despite no takeaways for near-term earnings per se, visibility of the growth runway is positive, the Jefferies note added.
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