The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0738 GMT - HDFC Bank's growth may benefit from medium- to long-term initiatives that it recently identified, Axis Securities analysts say in a research report. They maintain their buy rating on the stock. These initiatives include improving profitability metrics, ensuring sustainable deposit growth, along with strong growth in its retail deposit franchise, and investing in its distribution, workforce and digital infrastructure, the analysts say. However, the brokerage trims its net-interest-income estimates for the Indian bank by 3.4% for FY 2025 and 4.0% for FY 2026, to partly reflect lower credit growth assumptions. It cuts thetarget price for the stock to INR1,885.00 from INR1,975.00. Shares are 1.0% lower at INR1,515.95. (ronnie.harui@wsj.com)
0712 GMT - City Union Bank's loan growth pace in FY 2025 and FY 2026 is likely to more than double from around 5%-6% in FY 2024, ICICI Securities analysts say in a research note as they upgrade the stock's rating to add from hold and raise the target price to INR170.00 from INR150.00. The Indian bank has hired lateral talent and plans to chase growth through new loan products while augmenting its non-branch channel, the analysts note. Diminishing drag from legacy issues, improved IT systems, and focus on new products and channels should provide healthy visibility of its likely faster loan growth, the analysts add. Shares are 1.1% higher at INR156.00. (ronnie.harui@wsj.com)
0106 GMT - UBS now expects the gold price to end this year at $2,400/oz, up from $2,200/oz, as investors fear missing out on the precious metal's rally. The bank thinks gold could trading as high as $2,500/oz this year, although it may pause for breath in the near term. "Although gold's correlation with rates is currently in question, we still think that Fed easing and the outlook for lower real rates is still the main driver for bullish gold views," UBS says. Gold closed last week at a new record high of $2,398.40/oz and is up 16% year-to-date. (david.winning@wsj.com; @dwinningWSJ)
2328 GMT - An Australian bank rally over the past six months is difficult to justify, Citi analysts Brendan Sproules and Thomas Strong say in a note. Citi reckons easing financial conditions have driven the rally, but credit, inflation and employment data are now inconsistent with an environment where interest rates are likely headed down. Citi says the banks are trading on around a 1.7 times book, with falling returns. It downgrades ANZ and Westpac to sell, from neutral. After moving to a negative call on the sector in January, it now has seven sells across the banks. "Having a sell on the banks is an increasingly consensus call," says Citi. (alice.uribe@wsj.com)
2324 GMT - Westpac is Citi's most preferred Australian major bank, which thinks that the risks around the lender's technology and costs are broadly understood. In a note, analysts Brendan Sproules and Thomas Strong add that capital management offers support to the stock. Citi now has sell calls on all of Australia's big banks. Still, its order of preference is Westpac, ANZ, Commonwealth Bank and NAB. It highlights that NAB, with a new CEO, faces the prospect of slowing business growth and decisions over how to invest capital. (alice.uribe@wsj.com)
(END) Dow Jones Newswires
April 22, 2024 04:20 ET (08:20 GMT)
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