Buy Axis Bank, target of Rs 1012: Sharekhan

Sharekhan has upgraded its rating on Axis Bank from hold to buy with a target of Rs 1012 in its September 23, 2009 research report. At 12:09 pm, the share was quoting at Rs 920.70, up Rs 2.45, or 0.27%.

"We are incorporating the capital raising exercise into our earnings model and revising our estimates upwards by 3.3% for FY2010 and by 4.7% for FY2011. Based on our revised earnings estimates, our two-stage dividend discount valuation model indicates a price target of Rs 1,012. At the current market price of Rs 920, the stock trades at 2.0x FY2011E book value per share and 2.3x FY2011E adjusted book value per share. We upgrade our recommendation on the stock to 'Buy' from 'Hold' with a revised price target of Rs 1,012," says Sharekhan's research report.