Equal Weight RBL Bank, target Rs 300 : Morgan Stanley

Morgan Stanley has an equal weight call on RBL Bank Ltd. with a target price of Rs 300 .The current market price of RBL Bank Ltd. is Rs 328.4 The brokerage gave a year for RBL Bank Ltd. price to reach the defined target. The core revenues rose by 11 per cent which was above estimates via better-than-expected margins and fee income, said the brokerage note. The loan growth and asset quality trends remained strong. Morgan Stanley raised earnings-per-share (EPS) estimates by 11 per cent for F17 and 3 per cent for F18 owing to Q217 revenue beat. The valuation remains at 2.4xF18e book which appears fair in the context of 13-14 per cent return on equity (RoE).