Jefferies has reiterated its buy rating on Axis Bank with a target price of ₹1,430 per share following interactions during a recent investor forum, where feedback suggested improving operating momentum across key lending verticals. The brokerage said the bank remains well-positioned to deliver loan growth above the sector average, supported by an enhanced collections platform and sustained improvements in asset quality trends.
Jefferies highlighted that Axis Bank has invested significantly in both human resources and technology to strengthen its collections engine, which has helped stabilise slippages and improve recoveries. The brokerage expects net interest margins (NIMs) to bottom out in the third quarter as the cost of deposits gradually normalises, although it cautioned that any policy rate cuts by the Reserve Bank of India could impact the ability to pass on lower deposit rates swiftly.
However, Jefferies believes the overall risk-reward remains favourable at current valuations, with the stock trading at around 12x FY27 estimated earnings. It added that the bank’s capital position, liability franchise and continued operating leverage offer support to earnings growth through FY26–28, keeping the brokerage constructive on the stock.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
