Stocks to Buy: Morgan Stanley trusts this bank, gives investment advice

News Topical, Digital Desk : The stock market continues its downward trend. However, brokerage firms are simultaneously advising investors on stocks that have improved valuations amid this decline. Morgan Stanley has expressed confidence in Kotak Mahindra Bank, which has fallen more than 13% from its year-end highs reached at the end of April. Just a day earlier, Morgan Stanley had also upgraded IndusInd Bank. Valuation was also a key reason for the upgrade of IndusInd Bank.

What's special in the report?

Morgan Stanley said it has initiated coverage on Kotak Mahindra Bank and assigned an overweight rating to the bank. A target price of 2600 was set for the stock, representing an increase of more than 30% from Tuesday's closing price of 1996. The report stated that with improving economic activity, the bank remains well-positioned to accelerate growth. The bank's loan book is diversified, including commercial banking, vehicle financing, and unsecured loans. The bank's profit in the first quarter declined 58% compared to the previous year, while the bank's asset quality has seen some pressure.

IndusInd Bank receives an upgrade. Earlier, Morgan Stanley upgraded IndusInd Bank from underweight to equal weight and assigned a target price of 785 for the stock. According to the report, this upgrade was given considering the bank's valuation.

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