Morgan Stanley has reaffirmed its ‘Overweight’ stance on ICICI Bank, raising the target price to Rs 1,650. The global financial services firm highlighted ICICI Bank as its top pick, citing the bank’s strong market performance and resilience as key factors in its favor.
Top Pick Status: Despite ICICI Bank’s strong stock performance, Morgan Stanley maintains it as a top pick in the sector, indicating confidence in its continued growth potential.
Improved Funding and Underwriting Franchise: The bank’s improved approach to funding and underwriting has been a significant driver of its performance. This enhancement in operational strength is expected to support sustained growth.
Earnings Outperformance: Morgan Stanley anticipates that ICICI Bank’s earnings will continue to outperform its peers, bolstered by its advancements in delivery systems.
Power of Compounding and Re-Rating
Potential: With a consistent performance trajectory, the “power of compounding” is likely to play a crucial role in ICICI’s growth story. Morgan Stanley expects the bank’s valuation to see further re-rating as it continues to deliver robust results.
ICICI Bank’s ongoing improvements in its franchise and delivery capabilities make it a standout choice within the banking sector, according to Morgan Stanley, which remains optimistic about the bank’s long-term growth prospects.
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