Morgan Stanley has reiterated its underweight rating on Yes Bank with a target price of ₹17 per share, implying a potential downside of about 19.3% from the current market price of ₹21.07.
The brokerage noted that Sumitomo Mitsui Banking Corporation (SMBC) has completed its initial acquisition of a 20% stake in Yes Bank. Additionally, SMBC has signed a definitive agreement to acquire another 4.2% stake from Carlyle.
Despite these developments, Morgan Stanley said it continues to maintain an underweight view on the stock in the near term, citing expectations of only a gradual recovery in profitability.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.