Brokerages have released varied outlooks on ICICI Bank following its Q2 FY25 results, reflecting confidence in the bank’s operational strengths while showing different perspectives on its valuation. Here’s what the major analysts are saying:
- CLSA: Rates ICICI Bank as Outperform with a target price of ₹1,600, implying a 27% upside from the current market price of ₹1,259.60. CLSA highlighted ICICI’s steady quarter, strong asset quality, and robust provisioning, placing it among the top private banks this quarter.
- Motilal Oswal (MOSL): Maintains a Buy rating with a target price of ₹1,500, suggesting an upside of 19%. MOSL praised ICICI’s all-around performance, improved asset quality, and cost control, and raised its earnings estimates for the next two fiscal years.
- Nomura: Assigns Buy with a target price of ₹1,575, seeing approximately 25% upside. Nomura emphasized ICICI Bank’s strong loan and deposit growth, consistent performance, and high RoA among the private sector leaders.
- Bernstein: Assigns Market Perform with a target price of ₹1,250, indicating a slight downside from the CMP. Bernstein acknowledged ICICI’s premium valuation and solid RoA but remains cautious due to NIM moderation.
- Goldman Sachs (GS): Holds a Neutral stance with a target price of ₹1,361, which suggests an upside of around 8%. GS recognized ICICI’s strong earnings beat in a tough macro environment but remains watchful of potential pressures on credit costs and deposit growth.
In summary, while most brokerages recommend Buy on ICICI Bank, citing strong fundamentals, operational efficiency, and solid asset quality, some remain cautious about its valuation premium and moderating margins.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
