Why Brokerages are Upgrading ICICI Bank Stock?

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Why Brokerages are Upgrading ICICI Bank Stock?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- ICICI Bank’s stock price has been upgraded to Rs 549 by HDFC Securities (NS: HDFC ) and Rs 590 by Nirmal Bang Institutional while Prabhudas Lilladher has upgraded its price target to Rs 614. That’s a whopping 20.6% higher compared to the stock's current price of Rs. 509. Morgan Stanley (NYSE: MS ), Nomura Holdings Inc ADR (NYSE: NMR ), CLSA, and Edelweiss Financial Services Ltd. (NS: EDEL ) have all given it a target ranging between Rs 625 – Rs 650.

ICICI Bank (NS: ICBK ) stock was trading at Rs. 392 at the end of October. It has gained almost 30% since then. It picked up pace in November after it reported numbers for the quarter ended September 2020.

According to CLSA, ICICI Bank confirmed its collections were steady during the second-quarter earnings call. The bank further said the number of requests for restructuring debt is low and it expects less than 1% of its corporate and SME loan book to be restructured. The bank has allocated 1.3% of its loans for COVID-19 related provisions. ICICI Bank also indicated to analysts that retail loan growth will be back to pre-Covid-19 levels in a few quarters.

During the analyst call, ICICI Bank also said that corporates are optimistic and their interactions with corporates indicate that companies could start capex soon. A lot of bad loans have already been accounted for in the previous cycle and the bank’s corporate portfolio is a lot more resilient now.

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  • Narayan Mohapatra @Narayan Mohapatra
    Arrogant bull have forgotten where's his tail
    Like 0
  • Ajit Jakhar @Ajit Jakhar
    till 2025 target is 1500+
    Like 0
    • Chandrasekar Raghavan @Chandrasekar Raghavan
      Dreaming is our passion
      Like 0

      • Comment Guidelines

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  • Ravi Gajjar @Ravi Gajjar
    i bought at 320😁
    Like 2
    • Rakesh Prasad @Rakesh Prasad
      Great buy at right time. Dont sell it now . Target is 1000 in a year.
      Like 0

      • Comment Guidelines

      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: 

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  • Yatin Chavan @Yatin Chavan
    in short term, 550 seems to be the target
    Like 1
  • Yatin Chavan @Yatin Chavan
    in short term, 550 seems to be the target
    Like 1

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