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    IndusInd's strong Q3 show could boost upside

    Synopsis

    "Improvement in core performance as well as clarity on extension of CEO tenure will be key re-rating triggers for stock valuations," Jefferies said in a client note. Brokerage Avendus Spark is the most bullish. Its target price translates into a 37% upside from the current levels.

    IndusInd BankAgencies
    Of the 34 analysts, 30 maintained their 'buy' or 'outperform' rating on stock while 4 remained neutral.
    Mumbai: Most analysts at leading brokerages raised their price targets on IndusInd Bank after the private lender's December quarter results. IndusInd shares, however, surrendered early gains on Thursday to close at ₹1,201 on the NSE, down 1.8% from the previous close. A little over 1 crore shares exchanged hands on the BSE and NSE, four times its combined average daily volume in the last one month. Analysts said extension of CEO Sumant Kathpalia's tenure would be the next trigger for the stock.

    Analysts raised their target price by 2% to an average of ₹1,432.38, according to Bloomberg's average of 34 analysts. This implies a 19% upside from Thursday's closing price.

    Jefferies raised its price target and now sees 33% upside. It said healthy retail deposit growth was better than select peers. It also saw fresh slippages as blips and expected them to normalise. The brokerage tweaked its earnings estimates and said the stock is its preferred bet in the banking sector.
    IndusInd’s Strong Q3 Show Could Boost Upside

    "Improvement in core performance as well as clarity on extension of CEO tenure will be key re-rating triggers for stock valuations," Jefferies said in a client note. Brokerage Avendus Spark is the most bullish. Its target price translates into a 37% upside from the current levels.

    CLSA said the risk reward is favourable and CEO extension is a key near-term monitorable that could drive re-rating of the stock.

    Morgan Stanley also remains bullish on the stock. The brokerage said core pre-provision operating profit (PPoP) and credit costs surprised positively but moderation in SA ratio and slower MFI growth pickup were disappointing.

    Of the 34 analysts, 30 maintained their 'buy' or 'outperform' rating on stock while 4 remained neutral.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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