InvestorQ : What is your outlook for Kotak Bank? I am asking because UBS has sharply downgraded the stock?
Rashi Mehra made post

What is your outlook for Kotak Bank? I am asking because UBS has sharply downgraded the stock?

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sarah Leo answered.
6 months ago
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You will recollect that about 15 days back, Moody’s had brought out a report downgrading the entire banking and financial services sector in India due to rising balance sheet stress. Now UBS of Switzerland has also downgraded Kotak Mahindra Bank to ‘sell’ from ‘neutral’ and slashed target price to Rs 1,050 from Rs 1,500. UBS believes that the private sector lender’s valuation is at a premium to its peers is at risk. UBS has also lowered loan growth estimate for the ongoing financial year to 6% from 8% earlier. UBS also noted that the valuation premium enjoyed by Kotak Bank to peer banks was significantly above the five-year average, and that could meaningfully narrow in the next six to 12 months.

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