PB Fintech, Paytm, LIC, KMB, BOB, MMFS: Macquarie shares fresh ratings, target prices

Macquarie in its latest note upgradeed Kotak Mahindra Bank Ltd (KMB), Bank of Baroda (BoB), One 97 Communications Ltd (Paytm), M&M Financial Services Ltd (MMFS) and ICICI Prudential Life Insurance to 'Outperform'.  The foreign brokerage said it prefers Life Insurance Corporation of India, given the removal of the government stake-sale overhang, improving margins, and lower exposure to IRDA regulations. Macquarie, meanwhile, downgraded PB Fintech Ltd to 'Neutral' from 'Outperform', Bloomberg reported.

Macquarie said domestic private banks are expected to deliver 18 per cent earnings growth in FY28, as margins improve and operating expenses fall. It sees scope for a “significant re-rating,” as the sector trades at undemanding valuation of 1.3 times FY28 estimated book value.

Macquarie analysts Suresh Ganapathy and Dev Shah in the note said: “The macroeconomic backdrop remains supportive: post-FCNR mobilisation has eased liquidity constraints, loan demand is robust and broad-based, asset quality remains healthy, and rate increases appear imminent.”

Target prices

Macquarie suggested a target of Rs 2025 on Paytm, up from Rs 1,235 suggested on September 24. PB Fintech target has been set at Rs 1,150, down from Rs 1,950. KMB's target has been rasied to Rs 500 from Rs 455. BOB's target has been increased to Rs 280 from Rs 270. MMFS' target is raised to Rs 395 from Rs 270 earlier. The target for ICICI Prudential has been cut to Rs 540 from Rs 700, even as its rating has been rasied to 'Outperfrom' from 'Neutral'. Target for LIC has been kept at Rs 550.