Global brokerages upgrade SBI share price!
Last updated: 05 Feb, 2021 | 10:48 am
SBI shares soared to a fresh record high on Friday, after global brokerages upgraded its share price target following robust Q3 results. The shares ended 10.7% higher at Rs 393.10 on NSE.
- CLSA has revised its earnings estimate by 15-26% and now expects ROEs of 14% by FY23. The Q3FY21 performance has been much better than expectations, and SBI has a better asset quality position that even certain private banks, according to CLSA.
- Citi noted that lower than expected stress level and strong deposit traction should drive earnings growth for SBI.
- Credit Suisse expects growth to pick up and see Return on Equity improving to more than 12.5%. The credit costs are also expected to moderate in FY22, on reassuring trends in the bank's asset quality.
- Brokerage Macquarie Capital Securities said that it now has increased confidence in SBI's asset quality and balance sheet. It believes the bank is on track to hit its target of 1% return on assets as credit costs normalise.
Despite the effects of the pandemic, SBI has delivered strong results in the Oct-Dec 20 period. The bank has been able to maintain a healthy deposit and advances growth rate, on the back of a festive pick-up and sustained traction in its retail portfolio. Click here to see our analysis of the Q3 results.