BOI Share Price | BOB Share Price: Hot Stocks: Morgan Stanley raises target price for Bank of India, Bank of Baroda

It maintained its Equal-Weight rating on

, and Underweight rating on , said the note.

The global investment bank is of the view that PSU banks have been benefitting from the ongoing recovery cycle. It is of the view that Bank of India and Bank of Baroda have the best relative risk-to-reward ratio.

PSU stocks are outperforming defensive and cyclical stocks. On a year-to-date (YTD) basis, PSU stocks have outperformed other themes (Defensive, Cyclical, and Rate sensitive).

Since 17th Jun’22, the PSU banks have recovered sharper on account of superior asset quality and double-digit credit growth, Axis Securities said in a note.

PSU banks witnessed a sharp recovery in the last month on account of better-than-expected quarterly results, the note said.

The domestic brokerage firm believes that the outperformance of PSU stocks is likely to continue moving forward, and the next big trigger for the market will be budget expectations.

Here’s what Morgan Stanley recommends:

Bank of India: Overweight| Hike Target price to Rs 125 from Rs 95

Bank of Baroda: Maintain Overweight| Hike Target price to Rs 220 from Rs 195

: Maintain Equal-weight| Hike Target price to Rs 60 from Rs 40

Canara Bank: Maintain Underweight| Hike Target price to Rs 345 from Rs 280

: Maintain Overweight| Target price of Rs 715

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)