Banking Stocks: Goldman Sachs has initiated coverage on 14 Indian banks and adopted a cautious stance on the banking sector. The brokerage has given a SELL rating to four banking stocks including RBL Bank, Yes Bank, Bank of Baroda and Punjab National Bank (PNB).
Goldman Sachs said that despite supportive GDP growth and a favourable monetary environment over the past five years, valuations of private banks have declined. During this period, foreign institutional investors (FIIs) reduced their holdings in the Indian financial sector by around USD 26 billion.
RBL Bank Share Price Target
Goldman Sachs has given a SELL rating to RBL Bank and set a target price of Rs 285. This indicates a potential downside of around 27 per cent from the current level.
RBL Bank Share Price
RBL Bank shares closed at Rs 391.35 on Friday, down 0.24 per cent. However, the stock has gained 54.59 per cent over the past one year and is up 24.12 per cent so far this year.
Yes Bank Share Price Target
Goldman Sachs has also maintained a negative view on Yes Bank, assigning a SELL rating with a target price of Rs 22.
Yes Bank Share Price
Yes Bank shares closed at Rs 22.75 on Friday, gaining 0.044 per cent. The stock has risen 17.95 per cent over the past one year.
Bank of Baroda Share Price Target
Bank of Baroda has also received a SELL rating from Goldman Sachs. The brokerage has set a target price of Rs 245 for the stock. According to the brokerage, the stock could deliver a broadly flat return from the current level.
Bank of Baroda Share Price
The shares closed at Rs 246.20 on Friday, up 0.88 per cent. The stock has declined 18.54 per cent so far this year.
Punjab National Bank Share Price Target
Goldman Sachs has assigned a SELL rating to Punjab National Bank (PNB) and set a target price of Rs 103. This indicates a potential downside of around 12 per cent from the current level.
Punjab National Bank Share Price
PNB shares have gained 10.69 per cent over the past one year.
Goldman Sachs on banking stocks
Overall, Goldman Sachs has advised investors to remain cautious on these banking stocks. The brokerage’s ratings and target prices indicate limited or negative potential from current levels for RBL Bank, Yes Bank, Bank of Baroda and PNB.
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(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
