Brokerages upbeat on City Union Bank

ET BureauLast Updated: Oct 23, 2024, 06:31:00 AM IST

Synopsis

The price targets imply a 1-19% rise in the stock over its Tuesday closing price of ₹168.5. City Union Bank shares rallied 11.9% on Tuesday in a weak market in response to the September quarter earnings.

Mumbai: Analysts at brokerage firms raised their ratings or maintained their 'buy' ratings on City Union Bank (CUB) after the better-than-expected second-quarter results.

The price targets imply a 1-19% rise in the stock over its Tuesday closing price of ₹168.5. City Union Bank shares rallied 11.9% on Tuesday in a weak market in response to the September quarter earnings.

"A better-than-expected quarter across metrics-growth, profitability and asset quality," said Investec in a client note.

Agencies

"While this is the first quarter for all the three metrics to show improving trends, the bank is in a favourable cycle on the AQ (asset quality) front due to its secured nature."

"Further re-rating will be conditioned on smooth transformation of bank into a retail cum SME bank and the management transition," said Emkay Global.

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