Morgan Stanley reaffirmed its ‘Overweight’ rating on Axis Bank with a target price of ₹1,300, suggesting a 25% upside from the current market price of ₹1,044.00. The brokerage acknowledged the stock’s underperformance ahead of the Q3 results and anticipates continued volatility.
Axis Bank’s Q3 performance reflected macroeconomic challenges, with a revenue miss and higher credit costs weighing on its results. The management has guided for muted growth in the near term, citing tight liquidity conditions, and is prioritizing profitability over growth.
On asset quality, the bank expects slippages and credit costs to remain elevated in the near term. However, Morgan Stanley emphasized Axis Bank’s leverage to benefit significantly from a potential cyclical macroeconomic recovery.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.
