Updated Apr 27, 2023 | 10:39 AM IST
Yes Bank share price target 2023: ICICI Securities downgrades to Reduce (PTI File)
Yes Bank Share Price Target 2023: Domestic brokerage firm ICICI Securities has downgraded Yes Bank to Reduce from Hold and cut the target price. Yes Bank reported a mixed set of Q4FY23 earnings with healthy business growth, NIMs and improvement in headline net stress, though profitability remained weak due to continued investment in franchise and retail orientation.
Despite sectoral headwinds, ICICI Securities said that it has been impressed by Yes Bank’s progress in ‘retailisation’ of balance sheet, sharp clean-up in asset quality and improved capital levels.
The bank appears to be the preferred banker to ‘Digital India’ and has disproportionate market share in digital payments. However, the brokerage remains concerned on its muted operating earnings profile where it sees only gradual improvement going ahead due to relatively higher gestation period of retail business and intense competition.
It noted that Yes Bank has additional lumpy risks on AT-1 bonds write-offs litigation, which is pending in the Supreme Court.
Yes Bank Share Price Target 2023
While revising FY24 earnings estimates, ICICI Securities said that the risk rewards appear unattractive. "We downgrade the stock to REDUCE from HOLD," it said. The brokerage has set a new target price of Rs13.5.
Yes Bank shares have eroded almost 96 per cent wealth of its shareholders in the last 5 years. In 2023 so far, the counter has slumped 27 per cent. On Thursday, the stock quoted at Rs 15.60 on NSE, up 1 per cent around 10:30 AM. The stock's 52-week range is Rs 24.75 - Rs 12.25.
Yes Bank during the March quarter posted a 45 per cent decline in its net profit at Rs 202 crore. For the entire FY23, the bank witnessed a 32.7 per cent decline in its net profit at Rs 717 crore. The bank said that its profits for both the March quarter and the fiscal year were impacted by accelerated provisioning.
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