Shares of private bank Axis Bank hit an all-time high on Wednesday, December 21, following strong recommendations from analysts and domestic brokerage Sharekhan. Shares of Axis Bank opened at Rs 953.10 per share on the NSE, up 0.44% from its previous close of Rs 949.75.

Axis Bank is the best-performing stock among private banks this year. Analysts and brokerages are bullish on the country’s third-largest private bank. The stock gained nearly 40% in 2022.

Domestic brokerage Sharekhan maintained its buy call on Axis Bank and raised its target price to Rs 1,140.

The broker said that Axis Bank had strengthened its franchise (in terms of assets and liabilities) over the past few years to improve performance in the medium term. It said Axis Bank is now emerging as a more structured franchise and will continue to deliver consistent performance.

“In this context, the current valuation gap (Axis Bank at 1.4x its FY2025E Core BV) with its core peers (ICICI Bank at 1.9x its FY2025E Core BV) is expected to narrow over the next 6-12 months’ said the brokerage firm.

Branch expansion will further accelerate growth, Sharekhan said. Additionally, the bank has started to gain market share in checking and savings accounts (CASA) by leveraging the digital ecosystem, focusing on corporate payroll account acquisitions, and cross-selling liability products to existing clients. The Citibank acquisition is expected to boost the CASA ratio by 200 basis points.

Sharekhan sees the bank emerging stronger through this upgrade cycle, with valuation multiples getting closer to peers.

Shares of Axis Bank are trading about 54% above their 52-week low of Rs 618.25 per share hit on June 23, 2022. Currently, the stock has a market capitalization of Rs 2.92 lakh crore.