Axis Bank shares gain as JPMorgan upgrades stock, raises target on asset quality beat

Shares of Mumbai-based private sector lender Axis Bank Ltd. opened 2% higher on Wednesday, January 28, following its December quarter results, after which the stock received an upgrade along with a higher target price from a global brokerage.

Brokerage firm JPMorgan upgraded Axis Bank to 'Overweight' and raised its price target to ₹1,525 per share.

The revised target implies a potential upside of 15% from current levels.

The brokerage said the lender's December quarter earnings

pointed to improving asset quality trends.

Axis Bank confirmed continued positive momentum in retail asset quality stabilisation, with early-bucket delinquencies in the newly originated retail loan book indicating that the improvement in asset quality could continue.

This also leaves room for a further decline in credit costs in financial years 2027 and 2028, the brokerage said in its note.

Overall, JPMorgan expects a stronger return on assets inflection for Axis Bank compared with its earlier estimates and now factors in return on assets of 1.65% and 1.70% for FY27 and FY28, respectively, compared with earlier expectations of 1.57% and 1.64%.

None of the 50 analysts that have coverage on Axis Bank have a 'Sell' rating on the stock after it reported its third quarter results over the weekend.

44 out of the 50 analysts that track Axis Bank have a 'Buy' rating on the counter, while the other six have a 'Hold' rating.

Shares of Axis Bank ended 5.09% higher on Tuesday at ₹1,322. The stock has risen over 34% over the last 12 months.