ABMoney upgrades Yes Bank to 'Buy'; target Rs 602

Moneycontrol Bureau

Brokerage house Aditya Birla Money is bullish on Yes Bank and has upgraded rating of the stock from 'Accumulate' to 'Buy' citing the bank to be the biggest beneficiary of an easing interest rate cycle. The broking firm has also raised target price to Rs 602 apiece from Rs 569 earlier. "Yes bank reported yet another strong numbers with robust growth in core operations as well as fee income. The bank’s stable asset quality, uptick in low cost CASA deposits & superior return ratios bodes well for its future growth," said the AB Money note to clients. "We estimate Yes Bank to report an EPS CAGR of 27.7 percent over FY13-FY15E. ABV is estimated to grow at 25.9 percent CAGR during the same period. We believe continued traction in CASA will continue to drive margin performance going forward. The stock currently trades at 2.5x FY14E ABV and 1.9x FY15E ABV. We maintain our positive view on the stock and change our rating from accumulate to bUY with a revised price target of Rs 602.1 (Rs  569.3 earlier), implying an upside potential of 21.3 percent," said the Aditya Birla Money note. Bodies Corporate holding more than 50% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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