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Macquarie Upgrades 9 Financial Stocks, Downgrades PB Fintech Amid Sector Growth Expectations
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CNBC Awaaz•30-09-2026, 08:39
Macquarie Upgrades 9 Financial Stocks, Downgrades PB Fintech Amid Sector Growth Expectations
- •Macquarie upgraded 9 financial stocks, including Kotak Mahindra Bank and Paytm, with 7 to 'Outperform' and 3 to 'Neutral'.
- •The brokerage expects strong bank earnings growth, with EPS potentially increasing by 18% in FY28 due to improved margins and attractive valuations.
- •Insurance sector valuations appear attractive despite recent poor performance, as current prices reflect regulatory concerns.
- •PB Fintech was downgraded from 'Outperform' to 'Neutral' by Macquarie, while Bernstein cut its target price due to stricter-than-expected commission cuts.
- •Bernstein suggests PB Fintech may reduce its general insurance business or focus more on life insurance due to lower take rates.
Key Questions Answered
Macquarie expects strong growth in bank earnings for FY2028, with earnings per share (EPS) potentially increasing by about 18% driven by an expected 15 basis point improvement in margins.
Macquarie upgraded nine stocks in its report, raising Kotak Mahindra Bank, Bank of Baroda, Paytm, M&M Finance, LIC Housing Finance, and ICICI Prudential to 'Outperform', and Bajaj Finance, SBI Cards, and Chola Investment to 'Neutral'.
Bernstein cut PB Fintech's target price from ₹2,310 to ₹1,085 per share because proposed commission cuts are stricter than expected and lower take rates in general insurance may not cover current costs.
