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

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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?

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