Morgan Stanley (MS) has downgraded SBI Cards and Payment Services to Underweight and slashed its target price to ₹710, implying a downside of nearly 20% from the current market price of ₹891.10.
The brokerage cited a miss on credit costs, driven by higher stressed asset formation and an increase in expected credit loss (ECL) coverage. MS noted it had already flagged that market expectations for credit costs and earnings were too optimistic.
Following the Q1FY26 results, Morgan Stanley now expects a shift in investor sentiment, with significant downward revisions to earnings forecasts likely in the near term.
Disclaimer: This article is based on Morgan Stanley’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
