UBS has a ‘Buy’ on ICICI Bank with a target of Rs 1150. Strong improvement in net interest margin from higher yields coupled with higher dividend and treasury income led to a strong performance. UBS believes that the bank is on track to improve its RoE despite challenging macro environment.
Macquarie has an ‘Underperform’ rating on Idea with a target of Rs 66. Significant decline in ARPMs during the quarter is a matter of concern. Macquarie believes that regulatory overhangs related to spectrum pricing and re-farming will remain a key overhang on the stock.
Citi has a ‘Buy’ on Axis Bank with a target of Rs 1,320. Axis’s Q4 profits, up 25% year-on-year, is 5% ahead of they estimates. Citi believes the balance-sheet performance would be well ahead of market expectations on continued high CASA and strong asset quality.
Standard Chartered has an ‘Outperform’ rating on Biocon with a target of Rs 310. StanChart have, however, lowered their FY14 earnings estimates by 8% primarily due to lower milestone income from the Pfizer deal.