ICICI Bank share price rose over 8% on Thursday after Kotak Institutional Equities referred the stock as its top pick and maintained 'buy' call on the private sector lender. However, the research and broking firm cut its target price to Rs 490 from Rs 615 per share.
ICICI Bank share opened with a gain of 3.45% and later touched an intraday high of Rs 344.95, rising 8.13% on BSE as against the last closing of Rs 319.
ICICI Bank stock price traded higher than 5-day moving averages but lower than 20, 50, 100 and 200-day moving averages. ICICI Bank stock has risen 8.27% in the last month.
"ICICI Bank continues to be our top pick as we believe that the underlying conditions provide a favourable testing ground for the bank to differentiate itself in relation to its key peers. A strong liability profile, better asset mix, slower growth and healthy CAR could make ICICI Bank well-positioned to come through this challenging period with a relatively lower degree of stress," Kotak Institutional Equities said in its report.
"We cut our fair value to Rs 490 (from Rs 615) to reflect earnings revisions and a higher discount to its key subsidiaries," added the report.
The brokerage said it finds a combination of inexpensive valuations and a comparatively better-positioned balance sheet that could enable the bank to recover from this event faster than its peers.
It maintains the positive view on ICICI Bank and believes that the recent price correction offers another attractive entry point into the stock, said KIE.