Archive · 22 Jul 2026
YES Bank's Stock Target Raised by Nomura
Nomura, a foreign brokerage, has increased its target price for YES Bank's stock to Rs 23 from Rs 21.
However, they kept their rating as 'Neutral' because they think the good things about the bank are already reflected in the stock price.
Other brokers like Citi and Morgan Stanley have a more negative view, suggesting that people should be careful.
YES Bank showed good growth and profits in the last quarter, but Nomura says the bank needs to improve its retail business to get a higher valuation.
The bank's management expects to recover between Rs 800 and Rs 1,000 crore from security receipts in the fiscal year 2027.
Nomura raises YES Bank's target price to Rs 23 but maintains a 'Neutral' rating.
YES Bank reported strong core pre-provision operating profit growth of 62% YoY.
Nomura highlights improved margins and strong net interest income (NII).
Other brokerages have 'Sell' or 'Underweight' ratings on YES Bank.
YES Bank aims to improve core ROA through margin improvements and retail business turnaround.
- Who
- Nomura, YES Bank
- What
- Nomura raises YES Bank's target price to Rs 23 but maintains a 'Neutral' rating.
- When
- June quarter
- Where
- India
- Why
- Strong core pre-provision operating profit growth and improved margins.
Optimistic View
Cautious View
Stock Valuation
Optimistic View
Nomura believes the stock's current valuation adequately captures the positives, justifying a higher target price.
Cautious View
Other brokerages like Citi, Investec, Morgan Stanley, and JPMorgan have 'Sell' or 'Underweight' ratings, indicating a more cautious outlook.
Profitability and Growth
Optimistic View
Nomura highlights strong core pre-provision operating profit growth and improved margins, suggesting a positive trajectory.
Cautious View
The cautious view emphasizes the need for a strong profitability turnaround in the retail segment for further re-rating.
- Nomura's Target Price
- Rs 23
- Bloomberg Consensus Estimate
- Rs 21.10
- Core ROA Improvement
- Improving margins, retail business turnaround, and containing credit cost
- Q1FY27 PAT
- Rs 1,072 crore
- SR Recovery Guidance
- Rs 800-1,000 crore in FY27E