Buy Federal Bank; target of Rs 60: Sharekhan
Sharekhan is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 60 in its research report dated May 28, 2020.
May 29, 2020 / 01:08 PM IST
Sharekhan's research report on Federal Bank
Federal Bank Limited (FB) posted strong results for Q4FY2020, with in-line topline growth, but treasury gains helped offset the steep rise in provisions. Moreover, the sequentially improved asset quality (GNPAs down 8 bps) is a positive. Higher other income (OI) partially helped cushion the impact of the steep rise in provisions, which at Rs. 567 crore (including COVID-19 related provision of Rs. 93 crore) increased by ~2x y-o-y. COVID-19 has increased downward risks to the global economic outlook;hence, inward remittances are likely to be vulnerable.
We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 60.
For all recommendations report, click here
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