The shares of Axis Bank have gained strength in the last year, outrunning the benchmark index Sensex by a significant margin, yet analysts and brokerages believe it will increase more in the medium term.

Axis Bank has gained 72 per cent on BSE in the last year against a 51 per cent gain in the Sensex. In 2021, the stock is up 19 per cent, while the Sensex is up 10 per cent. Brokerages believe the stock will rise further as the fundamentals of the stock are complete, and the impact of the second wave of Covid-19 will be lower than the first wave due to the absence of prohibition. Global financial firm Morgan Stanley is overweight on the stock with a target price of Rs 1,000, a 35 per cent upside from the current market level of Rs 739.65.

“There will be near-term impact owing to the second Covid-19 wave. However, the bank expects to re-accelerate growth across segments as the Coronavirus-related concerns subside,” Morgan Stanley said.

Emkay has a buy call on the stock with a target price of Rs 960, a 30 per cent upside from the stock’s current market price. “The bank claims that lower ECLGS disbursement among peers corroborates better-quality SME back-book and plans to re-accelerate growth. On the corporate front, the focus will be on building granular working capital and mid-corporate book. We build in 15-22 per cent growth for FY22-24E,” Emkay said.