Religare upgrades Yes Bank to 'Buy'
The stock has underperformed the BSE Bankex by 18% over the last six months.
By ET Bureau |
YES BANK
RESEARCH: RELIGARE
RATING: BUY
CMP: Rs 330
Religare upgrades Yes Bank from 'Hold' to `Buy' with a target price of Rs 380, translating into an upside of 17% from current levels. The stock has underperformed the BSE Bankex by 18% over the last six months while Religare remains mindful of Yes Bank's weak liability franchise, more so in a tight liquidity environment, they believe that the impact on net interest margin is likely to be limited given that 95% of the bank's asset book remains floating in nature and has a duration of less than one year.
Apprehensions on asset quality stemming from exposure to micro finance and the telecom sector persist, but appear overdone. Religare keeps the numbers unchanged for now as they are already factoring in a 15 bps compression in net interest margins and higher credit costs through FY12. In Religare's view, current valuations are attractive given Yes Bank's high growth profile and healthy return on equity.
RESEARCH: RELIGARE
RATING: BUY
CMP: Rs 330
Religare upgrades Yes Bank from 'Hold' to `Buy' with a target price of Rs 380, translating into an upside of 17% from current levels. The stock has underperformed the BSE Bankex by 18% over the last six months while Religare remains mindful of Yes Bank's weak liability franchise, more so in a tight liquidity environment, they believe that the impact on net interest margin is likely to be limited given that 95% of the bank's asset book remains floating in nature and has a duration of less than one year.
Apprehensions on asset quality stemming from exposure to micro finance and the telecom sector persist, but appear overdone. Religare keeps the numbers unchanged for now as they are already factoring in a 15 bps compression in net interest margins and higher credit costs through FY12. In Religare's view, current valuations are attractive given Yes Bank's high growth profile and healthy return on equity.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
