Goldman Sachs has identified three bank stocks with significant upside potential, forecasting gains of up to 29 percent. These stocks are expected to benefit from strong growth prospects, improved profitability, and favorable market conditions. Investors looking for opportunities in the banking sector might consider these recommendations for potential returns.
Here are a few Bank stocks recommended by Goldman Sachs with an upside potential of up to 29 percent:
1. PNB Housing Finance Limited
PNB Housing Finance Limited was established in 1988 and is a leading Indian housing finance company. It offers a range of financial products, including home loans, loans against property, and construction loans. Promoted by Punjab National Bank, it operates across India with a strong network of branches and channel partners
Stock Price Movement
With a market capitalization of Rs. 24,009.28 crore, the shares of PNB Housing Finance Limited closed at Rs. 923.70 per equity share, down nearly 4.23 percent from its previous day’s close price of Rs. 963.50.
Target
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on PNB Housing Finance Limited with a target price of Rs. 1,184 per share, indicating an upside potential of 28.77 percent from today’s low of Rs. 919.50.
Rationale:
Goldman Sachs has upgraded its outlook on PNB Housing, citing the lender’s strong potential for sustained loan growth and profitability. The firm sees improved visibility in PNB Housing’s performance, reflecting confidence in its ability to deliver solid financial results moving forward.
Recent Quarter Result
PNB Housing Finance Limited’s net interest income has increased by 35.73 percent from Rs. 1,748 crore in Q3 FY24 to Rs. 1,923 crore in Q3 FY25. The company’s net profit has increased by 10.01 percent, from Rs. 347 crore in Q3 FY24 to Rs. 471 crore in Q3 FY25.
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2. Axis Bank Limited
With a market capitalization of Rs. 328,832.19 crore, the shares of Axis Bank Limited closed at Rs. 1,061.65 per equity share, down nearly 1.47 percent from its previous day’s close price of Rs. 1,077.50.
Stock Price Movement
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Axis Bank Limited with a target price of Rs. 1,288 per share, indicating an upside potential of 21.69 percent from today’s low of Rs. 1,058.40.
Target
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Axis Bank Limited with a target price of Rs. 1,288 per share, indicating an upside potential of 21.39 percent from today’s low of Rs. 1,061.
Rationale
Goldman Sachs is anticipating a valuation rebound as the bank’s profitability and growth are expected to stabilize in the first half of the current financial year. The bank is also set to benefit from increased liquidity in the system, which should boost its loan growth.
Recent Quarter Result
Axis Bank Limited’s net interest income has increased by 11.42 percent from Rs. 28,865 crore in Q3 FY24 to Rs. 32,162 crore in Q3 FY25. The company’s net profit has increased by 3.97 percent, from Rs. 6,520 crore in Q3 FY24 to Rs. 6,779 crore in Q3 FY25.
3. State Bank of India
With a market capitalization of Rs. 662,251.43 crore, the shares of Axis Bank Limited closed at Rs. 742.05 per equity share, down nearly 3.43 percent from its previous day’s close price of Rs. 768.40.
Stock Price Movement
With a market capitalization of Rs. 6,75,147.51 crore, the shares of Axis Bank Limited closed at Rs. 756.50 per equity share, down nearly 1.55 percent from its previous day’s close price of Rs. 768.40.
Target
Goldman Sachs, a prominent brokerage firm, has recommended a “neutral” call on State Bank of India with a target price of Rs. 823 per share, indicating an upside potential of 11.10 percent from today’s low of Rs. 740.75.
Recent Quarter Result
Axis Bank Limited’s net interest income has increased by 10.44 percent from Rs. 112,868 crore in Q3 FY24 to Rs. 124,654 crore in Q3 FY25. The company’s net profit has increased by 67.99 percent, from Rs. 11,598 crore in Q3 FY24 to Rs. 19,484 crore in Q3 FY25.
Written By – Nikhil Naik
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Goldman Sachs has identified three bank stocks with significant upside potential, forecasting gains of up to 29 percent. These stocks are expected to benefit from strong growth prospects, improved profitability, and favorable market conditions. Investors looking for opportunities in the banking sector might consider these recommendations for potential returns. Here are a few Bank stocks
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