ICICI Bank shares hit fresh record high as stock continues to rally. Is there more upside seen?

“ICICI Bank delivered a strong outperformance and the highest growth in NII among large banks, even on a high base. ICICI retains its position as the best-in-class performer for the eighth quarter, outperforming peers on every metric from core PPOP to treasury and buffer provisions. We reiterate ‘BUY/SO’ and top pick. We believe the bank can continue to deliver on loan growth and NIM expansion even on a high base. With eight consecutive quarters of best-in-class earnings, and NIM expansion likely to sustain,” said Edelweiss while reiterating its ‘Buy’ rating on ICICI Bank shares with a target price of ₹1,115.

“ICICI Bank reported strong 2QFY23 performance on the back of robust credit growth, multi-quarter high margins and lower credit cost. Credit growth came in at 22.7% YoY, largely led by all the segments. Opex growth came in elevated as the bank continued to invest in technology. Gross delinquencies declined sharply, leading to improvement in asset quality,” said Nirmal Bang.

The brokerage house remains positive on ICICI Bank given its growth outlook and earnings trajectory and has maintained Buy on the bank stock with a target price (TP) of ₹1,144 per share.

“NIM expanded 30 bps QoQ, in line with industry trends as assets reprised faster than liabilities and loan mix change towards high-yielding loans. Asset quality improvement continues with negligible net slippages and reduction in restructured loans. However, current quarter RoA/RoE is unlikely to sustain with system level liquidity crunch slowing down loan growth and compress NIMs in 2HFY23/FY24,” said another brokerage Ambit with revised target price of Rs1,025 and a Buy rating on ICICI Bank.

ICICI Bank shares outperformed by gaining more than 24% in the last six months as compared to about 6% rise in benchmark BSE Sensex during the period.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.