UBS has upgraded SBI Cards from ‘Sell’ to ‘Neutral,’ increasing the target price to ₹800 from ₹600, implying a 4.9% potential upside from the current market price of ₹762.95. The brokerage highlighted signs of stabilization in delinquencies and improved underwriting as key drivers for the upgrade.
UBS also lowered FY26E/FY27E credit costs to 7.3% and 7.1%, respectively, and raised EPS estimates for FY26/FY27 by 4% and 5%. Key catalysts include further declines in overdues and relative growth compared to peers. UBS remains cautious, awaiting sustained improvement in delinquency trends before adopting a more bullish stance.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
