HSBC reiterates its 'Overweight' rating on Yes Bank

HSBC has reiterated its 'Overweight' rating on Yes Bank with a target price of Rs 463. HSBC continues to value Yes Bank using a weighted average combination of P/E, P/B, and economic profit model (EPM) methodologies.

They have assigned a 50%, 20%, and 30% weighting to P/E, P/B, and EPM components, respectively.

"We raise our target multiples to Yes's 5-year averages of 13x PE and 2.4x PB from 10x and 1.8x, respectively. We have seen several private bank valuations re-rate once their CASA ratios crossed 20% sustainably which is due from the current year for Yes Bank," HSBC said in a note to clients.