Morgan Stanley upgrades Axis Bank shares to 'overweight', raises target price

Reuters Posted online: Tuesday, Nov 19, 2013 at 0000 hrs
New Delhi : Morgan Stanley upgrades Axis Bank Ltd to "overweight" from "equal-weight" and raises its target price to 1,300 rupees from 1,000 rupees, citing reduced loan exposure to problem sectors such as infrastructure over the last 12-15 months.

While the brokerage house says Axis Bank is still exposed to a weaker economy, the reduced exposure to problem sectors coupled with a better balance sheet implies the bank's ability to withstand stress is very high.

Morgan Stanley also adds valuation multiples for Axis Bank factor in a fair degree of weakness.

* Axis Bank shares up 0.14 percent at 0910 GMT.

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