3 reasons why ICICI Bank stock may outperform peers; share price targets & more  

ICICI Bank Ltd could be a re-rating candidate following its consistent show in the recent quarters, said domestic brokerages as they maintained their 'Buy' ratings on the stock, with price targets that suggest up to 20 per cent potential upside. The stock should keep commanding premium valuations over other large peers, analysts said.

ICICI Bank remains the most consistent lender in delivering core earnings and granular growth, said Nuvama Institutional Equities. Given ICICI Bank's earnings are free of the problems that afflicted its peers in Q1FY25, it argues the stock should re-rate going ahead.

"ICICI Bank turned in strong earnings and outperformed on three key concerns plaguing its peers in Q1FY25: asset quality, LDR and NIM. Loans grew 15 per cent YoY/3 per cent QoQ while the 4bp QoQ dip in NIM is lower than expected and the QoQ increase in slippage of 11 per cent YoY is also lower than peers and expectations," Nuvama said as it suggested a target of Rs 1,450 on the stock.

Motilal Oswal Securities said ICICI Bank reported a steady quarter, unlike many of its large peers. NII growth has been consistent, and the pace of NIM compression has slowed, while opex has been well under control, even after adjusting for employee increments in Q1, it said.

"The bank's substantial investment in technology offers some cushion against opex costs. A stable mix of a high-yielding portfolio (Retail/Business Banking) and ongoing growth in Business Banking, SME, and secured retail segments are driving broad-based growth, helping the bank maintain healthy business diversification," Motilal Oswal said.

MOFSL expects ICICI Bank to sustain a 12 per cent CAGR in profit after tax over FY24-26E. It reiterated its 'Buy' with an revised target price of Rs 1,400 from Rs 1,350 earlier.

Nirmal Bang Institutional Equities valued ICICI Bank at 2.8 times June 2026 ABV. Adding subsidiary value per share of Rs 181, it derived at a target price of Rs 1,450 against Rs 1,412 earlier.

"Our target multiple is at an 8.1 per cent premium to past 5-year average multiple of 2.6 times, which adequately captures an earnings CAGR of 13.9 per cent over FY24-FY26E. Earnings will be driven by loan CAGR of 15.6 per cent, stable NIM of 4.4 per cent, improvement in opex ratios and average credit cost of 55bps, thereby leading to average RoA of 2.3 per cent during FY24-FY26E," it said.

Nuvama said ICICI Bank continues to deliver consistent performance even in seasonally weak quarters even as earnings volatility of its peers is rising. Given the increasing quarterly earnings volatility and high LDR of most peer banks, it argued that ICICI’s premium over peers should expand further.