sbi share price: Brokerages hike SBI price target by up to 70%

Mumbai: Shares of India’s largest lender surged to a record high on Friday as analysts hiked target price on the stock by 25-70% after its December quarter profit beat analysts’ expectations.

The stock ended up 10.7% at Rs 393, extending gains from the previous session. The stock surged 15% intraday to hit a high of Rs 408.35.

“SBIN reported robust operating performance in a challenging environment. Loan growth is showing healthy recovery in retail portfolio, with disbursements in many business segments surpassing pre-Covid levels,” said Motilal Oswal, raising target price to Rs 475.

Credit Suisse raised target price by 70.4% to Rs 460 from Rs 270. Morgan Stanley raised target price by 50% to Rs 525 from Rs 350. CLSA raised target price by 45.45% to Rs 560.

In a report titled ‘The elephant has started dancing’, Macquarie said its confidence in SBI’s balance sheet and asset quality has increased. “What we like about SBI now is that it is well provided for legacy assets with around 68% coverage ratio on pro forma NPLs excluding write-offs and fewer restructured assets. We have increased confidence in SBI’s asset quality and balance sheet and hence believe SBI is on track to hit its target 1% ROA as credit costs normalise,” said Macquarie, raising target price to Rs 450 from Rs 360.