Morgan Stanley initiates coverage with overweight rating on AU Small Finance Bank

Morgan Stanley initiates coverage with overweight rating on AU Small Finance Bank

 

 

 AU Small Finance Bank share price gained a little over 2 percent after global brokerage firm Morgan Stanley has initiated coverage with overweight rating on the stock.

The research house has set a target of Rs 725 per share for the stock, implying 19.3 percent potential upside over Thursday’s closing price.

Morgan Stanley expects the non-banking finance company to report strong growth and high profitability going ahead.

“While the stock is not cheap w.r.t to Sensex multiples, we expect premium valuation to persist,” the brokerage firm said.

With effect from November 1, 2017, AU Small Finance Bank is a ‘Scheduled Bank’.

Meanwhile, its profit for July-September quarter increased to Rs 68 crore from Rs 62 crore and net interest income rose 12 percent to Rs 220 crore on year-on-year basis.

At 14:53 hours IST, the stock price was quoting at Rs 614.65, up Rs 6.85, or 1.13 percent on the BSE

 Source:-moneycontroll