Shares of Axis Bank Ltd . can gain 20% as per brokerage firm UBS, which upgraded its recommendation on the stock and increased its price target by over 15%.

UBS now has a "buy" rating on Axis Bank from its previous "neutral" recommendation and the brokerage has increased its price target on the private lender from ₹1,300 per share to ₹1,500 apiece.

The brokerage has increased Axis Bank's target multiple to 1.8 times its financial year 2027 estimated price-to-book value for the core bank from 1.6 times earlier, along with ₹90 per share ascribed to its subsidiaries.

It said the key downside risks for the lender are lower loan growth and deterioration in asset quality.

Credit cost in gradual decline

The brokerage said Axis Bank has been facing operating pressure due to a difficult op

See Full Page