The brokerage has 'underperform' rating on the stock and it has slashed target price by nearly half to Rs 80 from Rs 155 earlier
Yes Bank shares gained 2.7 percent intraday on July 10 even as global investment firm Jefferies turned bearish on the stock, citing liquidity concerns.
The brokerage has 'underperform' rating on the stock and it has slashed target price by nearly half to Rs 80 from Rs 155 earlier, implying 12 percent downside from current levels.
It also cut EPS estimates by 82 percent, 24 percent & 22 percent and book-value by 30 percent, 20 percent and 15 percent for FY20-22.
"Below investment grade book has inched up materially. Any lumpy NPL will shave off its wafer-thin capital below regulatory level," Jefferies said, adding upside rationale, if any, completely hinges on the bank's ability to raise capital.
The stock was quoting at Rs 93.50, up Rs 2.15, or 2.35 percent on the BSE at 1016 hours IST.
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