UBS has upgraded State Bank of India (SBI) to a ‘Neutral’ rating from its earlier stance, raising the target price to ₹840 per share from previous levels. The revised target reflects an 8% upside from the current market price of ₹779.90.
The global brokerage believes the risk-reward profile for India’s largest lender is now balanced. Key metrics like Core Pre-Provision Operating Profit (PPOP) to assets stood at approximately 1.5% for 9MFY25, signaling operational strength. UBS has also revised SBI’s earnings per share (EPS) estimates upward by 3% to 5% for FY26 and FY27.
However, it flagged risks around heightened competition in the sector and SBI’s relatively low Common Equity Tier I (CET I) ratio. On the positive side, liquidity surplus of ₹800 billion, potential tax rebates, and salary hikes are expected to support the bank’s growth trajectory in the near term.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.