ICICI Bank share price: Jefferies sees 50% upside; rates ICICI Bank as best banking stock globally


ICICI Bank share price target updated

Jefferies has rated ICICI Bank as one of the top banks across the world with the best risk-reward ratio with a 50% upside potential for the next 12 months. 

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Rationale behind ICICI Bank share price upgrade

  • Jefferies sees ICICI Bank averaging a 17% annual growth rate in profit over FY22-24 and a 16% return on equity.
  • Overseas NIMs for ICICI Bank could expand as the global liquidity market in tightening, which could lead to higher margins for the bank.
  • Given its lower exposure to riskier sectors and a very strong deposit franchinse, ICICI Bank is slated to benefit from deposit polarisation

ICICI Bank share price: Update on valuation

  • A comparison of global banks across RoA (return on assets) and PB (price to book) in FY23/CY22 shows that ICICI Bank offers among the best risk/reward. It trades at 1.1x on PB/RoA, as its one-year forward core banking PB of 2x is well justified by its RoA of 1.8-1.9%, which also has a potential upside risk,” Jefferies noted.
  • “In fact, among global banks that are near 1x on PB/RoA, ICICI Bank offers among the highest RoA,” the brokerage firm added. 

ICICI Bank share price: Target

  • Jefferies has set a 12-month target of Rs 1,070 on ICICI Bank shares in the base case, and said it can even touch Rs 1,170 if a few things work in ICICI Bank’s favour.  In a bear market scenario, it has set the target at Rs 660 for ICICI Bank.

ICICI Bank: Other updates

  • ICICI Bank recently announced the launch of a digital platform to address the needs of the students aspiring to pursue higher education in India and abroad. 
  • The platform will be called 'Campus Power' - a one-stop platform designed to assist the entire student ecosystem comprising students, parents, and institutes.
  • It offers both banking and value-added solutions in one place, eliminating the need for the student ecosystem to contact multiple stakeholders.
  • What is the target price of ICICI Bank?

  • Is ICICI Bank good for investment?

  • What is 'Campus Power' launched by ICICI Bank?