ICICI Bank Q3 Review: Analysts Up Target Price After Better-Than-Expected Results

Following better-than-expected earnings for the December quarter, some brokerages have increased their target price on the shares of ICICI Bank as they remain positive on the bank.

IDBI Capital Research has raised its target price on the stock by 2% to Rs 1,490 and maintained its 'buy' rating as the brokerage remains positive on the private lender given its ability to maintain return on assets above 2%.

Lower credit costs led by better recoveries resulted in best return ratios in the last few years for the bank with an RoA of 2.4% in October-December.

Motilal Oswal Financial Services has reiterated its 'buy' rating on the stock with a revised price target of Rs 1,550 on a healthy performance in the December quarter even in the current challenging environment led by controlled provisions, impressive cost control, healthy other income, and stable asset quality.

The contingency provisioning buffer of Rs 13,100 crore, which is 1.0% of the bank's loans, provides further comfort in case of any future cyclical stress, the brokerage said.

Systematix Institutional Equities has increased its target price on the stock to Rs 1,465 from Rs 1,455 and has maintained its 'buy' rating as the bank's earnings were in line with the brokerage's estimates. However, the brokerage has cut its credit growth estimates for the bank over 2025-26 (Apr-Mar) to 2026-27 by 150 basis points, factoring in the overall modest credit growth in the current financial year.

The brokerage also expects deposit pressures to persist in the next financial year. Therefore, it has cut its earnings estimate by 2% and expects the bank to deliver a return on assets of 2.2% and return on equities of 17% the next two years.

ICICI Bank remains Emkay Global Financial Services' preferred pick in the banking space because of its superior returns profile, top-management credibility and strong capital buffers.

The brokerage has maintained its 'buy' rating on the stock with a target price of Rs 1,450 as it believes that the recent correction in the bank's stock offers entry opportunity. 

Brokerage Nuvama Institutional Equities also echoed a similar view and retained its 'buy' rating on the stock with a target price of Rs 1,470 given the lender's strong retail franchise and stable asset quality.

Dolat Capital Market Private Limited has tweaked its earnings estimates for the bank but maintained its 'buy' rating and a target price of Rs 1,500 as it expects the bank to continue attracting significant valuation premium over peers backed by its superior credit costs, healthy growth and higher profitability ratios.