HDFC Securities has given Buy recommendation for City Union Bank with a target price of Rs. 192 in its research report issued on Feb 04, 2021
HDFC Securities’ research report on City Union Bank
Despite higher-than-expected LLPs, CUBK’s 3Q earnings were ~22% ahead of estimates on the back of a strong operating performance, driven by (1) an uptick in NIMs, (2) elevated treasury gains, and (3) better operating leverage. However, the pace and quantum of potential stress evolving at the bank, disappointed, especially when set against the backdrop of improving macros and consequently, peers’ performance.
We reduce our earnings estimates by ~7% over FY22-23E; we maintain BUY with a target price of INR 192.