INSUBCONTINENT EXCLUSIVE:
uncertainty over succession
Almost 70 per cent of the analysts favour the stock, according to Bloomberg consensus ratings but many believe that overhang on the stock
could remain even as the succession overhang is over.
The overhang is likely to stay because of the pending RBI audit report, uncertainty
around any further management change and future strategy under the new leadership.
Shares of YES Bank rallied 10.5 per cent intraday on
Friday after gaining 8 per cent in the previous session
However, the momentum fizzled out and the stock ended up 2.7 per cent at Rs 219.65
YES Bank's series of troubles started in September after the Reserve Bank of India trimmed CEO Rana Kapoor's term till January 31
Of the 50 analysts tracking the stock, 36 have a buy rating on it, 10 have a hold rating and five have a sell rating
However, the bank said there may be some uncertainty over the management in the near term and a few top-level departures cannot be ruled
out.
Citigroup has raised target price by11.6 per cent to Rs 240 while retaining neutral rating
CLSA, Daiwa, Deutsche, Edelweiss, IIFL, Jefferies and Macquarie have retained buy rating
Goldman Sachs and Nomura are neutral
Nomura has cut target price to Rs 245 from Rs 345
Nomura has cut price-to-book multiple to 1.5 times FY21 adjusted book due to uncertainties on potential divergencies and capital
