Management churn brings uncertainty for Axis Bank: CLSA
The brokerage has retained buy rating on Axis Bank with a target price of Rs 800.
By ET Bureau | Updated:
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Mumbai: Axis Bank is seeing many changes among the top management as well as business heads, mostly following the change of MD-CEO and more changes are likely as the new CEO prepares a new team, said CLSA.
The churn in management brings uncertainty and with the stock up more than 20% in past two-three months, clarity on the new strategy and execution quality will drive the next leg of stock returns, it said.
Cyclically, Axis should be in a sweet spot as it exits NPL recognition and provisioning cycle in FY19, the foreign brokerage said. However, over the past five years, it has lagged its peers on CASA productivity and innovation, said CLSA adding that a course correction here will help improve profitability.
The brokerage has retained buy rating on Axis Bank with a target price of Rs 800.
The churn in management brings uncertainty and with the stock up more than 20% in past two-three months, clarity on the new strategy and execution quality will drive the next leg of stock returns, it said.
Cyclically, Axis should be in a sweet spot as it exits NPL recognition and provisioning cycle in FY19, the foreign brokerage said. However, over the past five years, it has lagged its peers on CASA productivity and innovation, said CLSA adding that a course correction here will help improve profitability.
The brokerage has retained buy rating on Axis Bank with a target price of Rs 800.
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