Jefferies Maintains Positive Stance on Axis Bank with ₹1,700 Target Price

Jefferies continues to express optimism about Axis Bank as a top banking pick, citing broad-based operational improvement and strong financial performance.

Jefferies Maintains Positive Stance on Axis Bank

Global brokerage Jefferies has reaffirmed its positive stance on Axis Bank, maintaining an Accumulate recommendation with a target price of ₹1,700.

The brokerage believes the bank is witnessing broad-based operational improvement supported by stronger deposit mobilisation, healthy credit growth and improving asset quality.

This positive outlook is underpinned by Axis Bank’s ability to manage its asset quality, which has improved significantly over the past few quarters.

Key Drivers of Axis Bank’s Success

The brokerage identifies several key drivers that are contributing to Axis Bank’s success, including:

• Stronger deposit mobilisation, which has helped the bank to reduce its reliance on wholesale funding.
• Healthy credit growth, driven by a pick-up in demand from both retail and corporate customers.
• Improving asset quality, which has been achieved through a combination of better risk management and effective asset recovery.

Market Impact and Details

The positive outlook on Axis Bank is likely to have a positive impact on the bank’s stock price, which has been trading at a discount to its peers.

The brokerage’s target price of ₹1,700 represents a potential upside of around 15% from the current market price.

Axis Bank’s strong financial performance and improving asset quality make it an attractive investment opportunity for investors seeking exposure to the Indian banking sector.

Key Takeaways

• Jefferies maintains an Accumulate recommendation on Axis Bank with a target price of ₹1,700.
• The brokerage believes Axis Bank is witnessing broad-based operational improvement supported by stronger deposit mobilisation, healthy credit growth and improving asset quality.
• The positive outlook on Axis Bank is likely to have a positive impact on the bank’s stock price.

FAQs

What is the target price of Axis Bank as recommended by Jefferies?

The target price of Axis Bank as recommended by Jefferies is ₹1,700.

Why has Jefferies maintained a positive stance on Axis Bank?

Jefferies has maintained a positive stance on Axis Bank due to the bank’s broad-based operational improvement, stronger deposit mobilisation, healthy credit growth and improving asset quality.

What is the potential upside from the current market price of Axis Bank?

The potential upside from the current market price of Axis Bank is around 15% as per Jefferies’ target price of ₹1,700.

Conclusion

In conclusion, Jefferies’ continued optimism about Axis Bank as a top banking pick is underpinned by the bank’s strong financial performance and improving asset quality.

Investors seeking exposure to the Indian banking sector may find Axis Bank an attractive investment opportunity, given its potential for growth and improving profitability.

We recommend investors to maintain a close watch on Axis Bank’s stock price and consider investing in the bank at the right price.