Yes Bank Share Price rebounds again today but Kotak Institutional Equities maintains sell rating


Yes Bank Share Price: Shares of Yes Bank closed again on Thursday, December 15 with a boom. Earlier on Wednesday, its shares were seen to fall by more than 8 per cent. today also yes bank The shares opened with a fall, but soon the stock came in the green and at one point during the day’s trading had jumped up to 3 per cent. At the end of trading, shares of Yes Bank closed at Rs 22.30, up 0.90% on the NSE. Its highest level of the day was Rs 22.90. And the lowest level was Rs 21.45.

Prior to Wednesday, Yes Bank shares had gained 37% in about 4 days and during this time the stock had reached its two-year high of Rs 24.75. Along with this, Yes Bank had also joined the top-100 with the highest market capitalization. Although its shares saw a decline on Wednesday after this, but once again it has made a comeback today.

Kotak Institutional Equities, however, believes that the rally in Yes Bank shares that was expected to come has already happened and from here it can fall by around 28%. The brokerage firm has maintained ‘Sell’ rating on Yes Bank stock with a target price of Rs 16.

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What are the concerns raised by Kotak Institutional?

The brokerage firm said, “We are surprised by the valuations at which Yes Bank is trading and reiterate our negative view. Deal to raise funds by selling stake in Yes Bank shares and transfer its bad loans to ARC There has been an uptick after the news related to the deal, but these deals were already announced and this is not a new development.

“While both these deals are significant milestones for Yes Bank, we need to see more from what we are currently seeing to justify this premium valuation,” the brokerage said.

The research firm further said that “we had earlier raised concerns over the banks’ capital structure, their ability to improve liability franchises and employee retention after the moratorium period ends. Getting back on track takes time.”

Morgan Stanley expects 8% decline

Explain that global brokerage firm Morgan Stanley has also started covering Yes Bank shares with ‘underweight’ rating and has fixed a target price of Rs 20.5 for it. This is about 8% less than the current market price of Yes Bank.

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