Axis Bank hits 52-week high as brokerages maintain ‘buy’

Shares of Axis Bank touched 52-week high of Rs 766.70, up nearly 1 percent intraday March 20 after brokerages Nomura and CLSA maintained their ‘buy’ rating with a target of up to Rs 900 per share.

CLSA has maintained a buy on Axis Bank with a target at Rs 840 per share.

It reiterates the target of 18 percent RoE over three years and sees a recovery for its earnings from FY20. The firm expects that a better execution can drive the upside.

Its valuation is at a premium to peer corporate banks and will look for any rise in attrition levels following new appointments, CLSA added.

Nomura also maintained a buy on Axis Bank and raised the target to Rs 900 from Rs 850 per share.

According to Nomura, the company is transforming into a true compounder and will enter a predictable earnings compounding cycle with visibility of high ROEs.

There are more legs to the re-rating story over the next 2 years. The asset quality is bottoming out and operating performance should stabilise, said Nomura.At 1154 hours, Axis Bank was quoting at Rs 758.80, down Rs 2.20, or 0.29 percent on the BSE.

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