Why Credit Suisse likes Indian counterparts

Brokerage has 'outperform' rating on IIFL, Edelweiss, given growth opportunity, profitability, RoE

Shares of Edelweiss Financial Services and IIFL Holdings on Wednesday hit 52-week highs, gaining six per cent and 10 per cent, respectively. The rally is being attributed to foreign brokerage Credit Suisse, which has given an ‘outperform’ recommendation for both the stocks. The brokerage has pegged a target price of Rs 220 on Edelweiss and Rs 650 on IIFL. The upside on both the stocks after the rally is about 7-12 per cent over the next 12 months. 

In fact, Credit Suisse’s report, which reiterated the strengths of the Indian wealth management business, rubbed off on other listed brokerages such