India's Federal Bank hits record high; UBS upgrades to "buy"

Federal Bank

12/07/2024 09:43

** Shares of Federal Bank  FED.NS  up 2.4% at record high of
197.15 rupees; set for third straight session of gain
    ** Stock top pct gainer on Nifty Bank  .NSEBANK  and private
bank index  .NIFPVTBNK , which are up 0.6% each
    ** FED set for best week in five months
    ** UBS expects return on assets to rise 20 bps from FY22-24
to 1.4% by FY27 on improving NIM and sustained loan growth
    ** Brokerage upgrades stock to "buy" from "neutral" and sets
Street-high PT of 250 rupees, per LSEG data
    ** UBS also expects greater focus on margin growth by new
CEO, likely to be appointed in two months
    ** Mean rating of 30 analysts is "buy"; median PT is 195
rupees - LSEG data
    ** Stock has climbed 26% YTD; Nifty bank index and private
bank index up ~9% and ~6% respectively
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))