shares rose 1.26 per cent to ₹1,174.10 on Friday afternoon, following Morgan Stanley’s upgrade of its target price from ₹1,325 to ₹1,450, maintaining an overweight rating. The stock hit an intraday high of ₹1,188 against a previous close of ₹1,159.50.
Morgan Stanley cited the bank’s turnaround progress over the past year, noting it appears to be at a “cyclical inflection point” with improvements expected across net interest margins, growth, and credit costs. However, the brokerage expects re-rating relative to large private banks to be gradual, with benefits of strategic decisions becoming visible over the next 2-3 years.
The stock currently trades at a 30 per cent discount to HDFC Bank and 40 per cent discount to ICICI Bank on price-to-book value basis. Morgan Stanley’s target price implies a 25 per cent upside from current levels.
Jefferies maintained its positive stance on Axis Bank alongside HDFC, ICICI, and SBI, noting that the status quo on interest rates provides relief for private banks. The brokerage highlighted that upcoming ECL transition from April 2027 could bring one-time charges, though these may be partly offset by lower risk weights spread over five years.
Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, expects banking sector margins to bottom out in Q2, with support from deposit repricing and CRR cuts in the second half. The stock recorded traded volume of 42.98 lakh shares with 58.95 per cent deliverable quantity, indicating sustained investor interest.