Buy YES Bank, target Rs 1590 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has a buy call on YES Bank Ltd. with a target price of Rs 1590 .The current market price of YES Bank Ltd. is Rs 1256 Time period given by analyst is year when YES Bank Ltd. price can reach defined target. BofAML expects Yes Bank to come up with an EPS CAGR of ~25% in FY17-19E (pre-dilution). We believe that, in the last 2-3 years, the bank has clearly been focused on liability customer acquisitions and building a branch-centric model, thus moving toward a ‘retail’ model. The brokerage believes that the quality of earnings growth will also become more granular, driven by expanding margins and fees, well supported by loan growth. As the capital raise falls in place, we believe the growth (net profit) trajectory could be 30%+ CAGR in FY17-19 vs. estimated ~25% now.