ICICI Bank shares rose nearly 6% on Tuesday, January 23, after the lender reported a 23.5% increase in standalone profit and a 13% rise in net interest income (NII) on Saturday, January 20. At 9:38 am, the shares were 3.58% up at ₹1,044.35 apiece on BSE.
Key brokerages expressed bullish sentiments on the bank, pegging target prices between ₹1,190 and ₹1,350 per share.
Here's a look at the target prices given by brokerages on ICICI Bank:
| Brokerage | Call | Target Price (₹) |
|---|---|---|
| Morgan Stanley | Overweight | 1,350 |
| Macquarie | Outperform | 1,190 |
| CLSA | Buy | 1,300 |
| CITI | Buy | 1,322 |
Morgan Stanley
has assigned an overweight call to ICICI Bank. It highlighted the bank's third-quarter Profit After Tax (PAT) growth of 24%, accompanied by a Return on Assets (RoA) of 2.3% and a Return on Equity (RoE) of 18.5%.
The firm remained optimistic about the bank's strong balance sheet growth, expecting it to stay well above pre-COVID levels.
Despite projecting a potential moderation in RoA as margins adjust, Morgan Stanley foresees profitability remaining robust, making ICICI Bank an attractive investment prospect.
Macquarie, while maintaining an outperform call, acknowledged that the third-quarter PAT was in line with expectations.
Despite facing challenges such as high provisions and operating expenses, Macquarie noted that the bank's performance was offset by fee income.
The Net Interest Margins (NIMs) decline, as anticipated, has not deterred Macquarie's positive outlook, with the bank's FY24 guidance being upheld.
CLSA, with a buy call on ICICI Bank, emphasised that the bank's business performance is in line across all parameters, making it poised for rerating.
While acknowledging the ongoing moderation in Net Interest Margin, CLSA pointed out that the levels are still 40 basis points above those recorded in Q4FY22.
The bank's loan growth, coupled with robust asset quality and an average Return on Equity of 17% over the medium term, contributes to CLSA's positive stance.
CITI maintained a buy call for ICICI Bank, asserting that the bank's third-quarter performance exceeded expectations. Notably, Net Interest Margin (NIM) experienced a modest decline of only 10 basis points, compared to the estimated 16 basis points decline.
Operating expense (opex) growth was contained at 2%, contributing to the bank's overall positive financial outlook.
The loan growth, aligning with expectations, recorded 19% year-on-year and 4% quarter-on-quarter, while deposit growth slightly fell below expectations at 3% quarter-on-quarter, CITI said.
(Edited by : Amrita)
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