Morgan Stanley has raised its price targets on , Bank of Baroda, PNB and Canara Bank as it expects the sustained cyclical recovery to percolate to state-owned banks other than as well.
The brokerage said it sees potential for higher stock returns in Bank of India and BoB.
“Although we think SBI remains the best state-owned bank, we see potential for notably higher stock returns in BOI and BOB due to much cheaper valuations,” said Morgan Stanley in a client note.
“As the cyclical recovery is sustained, we expect benefits to percolate to non-SBI SoE (state owned enterprises) banks as well.”
