Morgan Stanley upgrades Axis Bank to 'overweight'

Raises target to Rs 1,300 from Rs 1,000

Morgan Stanley upgraded Axis Bank to "overweight" from "equal-weight" and raised its target to Rs 1,300 from Rs 1,000, citing reduced loan exposure to problem sectors such as infrastructure over the last 12-15 months.

While the brokerage house said that Axis is still exposed to a weaker economy, the reduced exposure to problem sectors coupled with a better balance sheet implies the bank's ability to withstand stress is very high.

Morgan Stanley also added valuation multiples for Axis Bank factor in a fair degree of weakness.

Axis shares were up 0.14% at 2:40 p.m.