Axis Bank stock: Buy, Sell, Hold – here’s what brokerages say, check their targets

Axis Bank has garnered mixed reviews from top brokerages following its recent quarterly results. While some maintain a positive stance, others have expressed caution due to moderated growth and tighter liquidity conditions. Here’s a roundup of what brokerages are saying about Axis Bank stock:

Brokerage Ratings and Targets

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  • Nuvama: Maintains a ‘Buy’ rating but cuts the target price to ₹1,220 (from ₹1,335), citing muted deposit growth and higher credit costs impacting near-term performance.
  • Citi: Retains a ‘Neutral’ stance and reduces the target price to ₹1,160 (from ₹1,190), reflecting concerns over growth challenges and elevated credit costs.
  • Jefferies: Maintains a ‘Buy’ call with a target price of ₹1,430, highlighting steady average deposit growth and stabilization in unsecured loans as key positives.
  • Bernstein: Keeps an ‘Outperform’ rating with a target price of ₹1,300, supported by stable margins and manageable slippage levels.
  • Macquarie: Reiterates an ‘Outperform’ stance with a target price of ₹1,440, driven by optimism around profitability and long-term asset quality improvements.

Market Performance

Axis Bank’s current market price stands at ₹1,044.00, implying a potential upside of 38% based on Macquarie’s highest target price of ₹1,440. Conversely, Citi’s target price indicates a more conservative upside of 11.1%.

Key Highlights

  • Brokerages agree on Axis Bank’s long-term potential but flag near-term risks such as slowing loan growth and higher credit costs.
  • Deposit growth remains a concern, with Axis lagging behind the industry average.
  • Positive commentary from Jefferies and Macquarie stems from stabilizing unsecured loans and resilient profitability metrics.

Axis Bank presents a mix of challenges and opportunities. While Jefferies and Macquarie emphasize strong potential for medium to long-term growth, caution from Nuvama and Citi highlights near-term hurdles. Investors looking for long-term returns may align with the optimistic brokerages, while those seeking stability may tread cautiously.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.