DBS analyst Lim Rui Wen maintained a Buy rating on Icici Bank (IBN – Research Report) yesterday and set a price target of $31.00.
Lim Rui Wen has given his Buy rating due to a combination of factors that position ICICI Bank favorably within the banking sector. He highlights the bank’s robust deposit franchise and stable asset quality as key strengths. ICICI Bank’s deposit base is one of the strongest nationwide, benefiting from lower rates and a growing current and savings account (CASA) franchise in a highly competitive market. Additionally, the bank’s credit standards have improved, leading to better asset quality and customer exposure compared to its peers, along with a significant buffer in provisions.
Furthermore, Lim Rui Wen is optimistic about ICICI Bank’s future growth, fueled by strong loan growth and ongoing digital transformation. The bank is expected to maintain a 17-20% loan book growth, driven by consumer loans and small and medium-sized enterprise (SME) lending. ICICI Bank’s technological leadership is projected to sustain its growth, especially through increased digital transactions for corporate clients and digital sourcing for retail segments. The continuous delivery of sustainable earnings and an uptrend in return on equity (ROE) are anticipated to further drive the bank’s share price, justifying a higher target price of US$31 and supporting the Buy recommendation.
According to TipRanks, Rui Wen is a 3-star analyst with an average return of 9.6% and an 82.35% success rate. Rui Wen covers the Financial sector, focusing on stocks such as JPMorgan Chase & Co., Bank of America, and Citigroup.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Icici Bank (IBN) Company Description:
India-based ICICI Bank Ltd. provides banking and financial services, which include retail banking, corporate banking, and treasury operations. It operates through the following segments: Retail Banking, Wholesale Banking, Treasury, and Other Banking.
