ICICI Bank, HDFC Bank and Axis Bank: Morgan Stanley says Large Private Banks are entering Golden Age – Next leg of Rerating Cycle
Large private banks have emerged stronger post crisis, balance sheets are strongest ever, and growth/market share is accelerating. Expect RoAs to near/cross previous peaks, which will drive multiples much above long-term averages. Morgan Stanley now factor this in their price targets and see 30-40% upside.
Morgan Stanley remain positive as growth momentum is strong, and believe the next leg of returns will be driven by valuation re-rating to much above-average valuations: Reuters