In Thursday’s trade shares of YES Bank took a beating after foreign brokerage UBS cut its target on the stock to Rs 90 from Rs 170 earlier, a drop of 47 percent.
The brokerage has maintained its sell rating on the stock as it feels that the expectations of a sharp turnaround are less likely to fructify.
The scrip fell 8.76 percent to hit a low of Rs 122.80 on BSE. Even at this price, the UBS target suggests a potential 27 percent downside. UBS is expecting credit cost for the lender to rise to 250 basis points (bps) in FY20 from 200 bps. It cut earning estimates for FY20/21 by 79 percent and 53 percent respectively.
The private lender is facing investor wrath over the actual amount of its stressed assets and is in talks with private equity investors to raise equity funds.
The scrip has dropped 32.68 percent market value year-to-date against Sensex’s 9.9 percent rise.