Axis Bank's share price on Wednesday morning hit a fresh 52-week high of Rs 767 apiece on NSE and Rs 766.70 on BSE. The surge comes a day after the bank's management released a statement on its strategy and its business segment to the exchanges saying that it aims to deliver 18 percent return-on-equity (RoE) over 3 years.
Multiple brokerages have revised their price targets for Axis Bank following the announcement.
CLSA has a 'buy' call on the lender with a price target of Rs 840 per share as it feels the "better execution will drive up the upside for the bank." Nomura raised its price target to Rs 900 for the corporate bank as it believes the that it "will enter predictable earnings compounding cycle with visibility of high RoEs."
Motilal Oswal also has a 'buy' call on the stock with a price target of Rs 875, citing the bank's gradual recovery on corporate fee growth, improving credit/cost margin outlook and feels it will likely accelerate its earnings in the coming years.
Meanwhile, Indian equity benchmarks Nifty 50 ad Sensex rallied for the seventh consecutive session, their longest gaining streak in more than three months. They opened at 11,535 and 38,388 levels respectively.