Shares of Kotak Mahindra Bank fell over 2 percent in Thursday’s trade after global brokerage Macquarie downgraded the stock to ‘neutral’.
The scrip slipped as much as 2.1 percent to Rs 2,125.1 apiece on the NSE. The stock has declined 2.36 percent over the last two sessions.
Macquarie, in its latest note, downgraded Kotak Mahindra Bank to ‘neutral’ but raised the target price to Rs 2,300, according to CNBC-TV18.
The brokerage said margin concerns for banks are temporary and projected a 15 percent CAGR in earnings per share (EPS) over the next three years. It said it prefers large private lenders and sees selective opportunities in NBFCs.
Its top picks include HDFC Bank, Axis Bank, Aditya Birla Capital, Power Finance Corporation, Shriram Housing Finance and LIC.
Kotak Mahindra Bank was among the top laggards on the Nifty Bank index, which also traded in the red, even as broader headline indices remained positive.
Meanwhile, Macquarie upgraded PB Fintech to ‘neutral’ from ‘underperform’ with a revised target price of Rs 1,945 and downgraded IndusInd Bank to ‘underperform’ from ‘outperform’, cutting its target price to Rs 650.
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