ICICI Prudential AMC: Morgan Stanley Predicts 26% Upside, Initiates 'Buy' Rating

• Morgan Stanley initiated coverage on ICICI Prudential AMC with an 'Overweight' rating and a price target of ₹3,500, implying a 26% potential upside.
• The brokerage expects ICICI Prudential AMC to deliver strong, industry-leading profit growth due to its leadership in active equity mutual funds and alternative assets.
• Morgan Stanley forecasts a 26% CAGR in total average AUM and a 25% CAGR in mutual fund AAUM between FY26 and FY28.
• Net operating revenue is projected to grow at a 22% CAGR, with PMS and AIF net revenues seeing a faster 36% CAGR over FY26-FY28.
• ICICI Prudential AMC is India's most valuable listed asset management company, with a market cap of ₹1.12 lakh crore, surpassing HDFC AMC and Nippon Life India AMC.

Why It Matters: Morgan Stanley recommends 'Buy' for ICICI Prudential AMC, projecting 26% upside due to strong growth prospects.