Should you buy, hold or sell Axis Bank shares after Q2 earnings?

Here's what brokerages said about the bank's stock and earnings:

The brokerage maintained an 'overweight' rating on Axis Bank with a target price of Rs 1,000. The lender's asset quality is strong, which is reflected in its lower slippages and credit costs, according to Morgan Stanley. The bank's quarterly profit, however, fell short of the brokerage's estimate due to lower pre-provision operating profit. Morgan Stanley has reduced its estimates on the lender's pre-provision operating profit for the near term but expects improvement over the next 2-3 years.

The brokerage retained its 'buy' call on Axis Bank but raised its target price to Rs 1,020 from Rs 910. The lender's Q2 profit exceeded estimates aided by a lower credit cost, and the moderation in slippages and low restructuring looks positive, according to Jefferies. It, however, said that Axis Bank's net interest margin is below peers, and narrowing the gap can take time.

The brokerage said Axis Bank's asset quality is strong but the pre-provision operating profit is weak. CLSA reduced its pre-provision operating profit estimates by 2-4 percent, though it left the profit estimates unchanged. Axis Bank has lagged peers on growth in loan and the pre-provision operating profit, said CLSA, which maintained its 'buy' call on the lender with a target price of Rs 1,080.