Yes Bank

CMP: Rs 257.40
Target price: Rs 300

CItigroup Global Markets has maintained its ‘buy’ rating on Yes Bank while raising the target price from Rs 230 to Rs 300 to factor in the proposed capital raising and continued strong growth of the bank.

“We rate Yes Bank with a buy/medium risk rating and an EVA-based Rs 300 target price,” says the report. The foreign brokerage feels that even though Yes Bank is relatively young, it has strong execution skills.

“It has built a focused asset portfolio, has strong treasury and advisory income businesses, and has kept risks relatively low. Moreover, we believe the bank offers aggressive growth potential,” the report adds. It further adds that the key catalysts for the stock's medium-term performance are likely to be easing domestic interest rate & liquidity environment, fresh capital raising and strong growth in investment banking fees.