Analysts raise their price targets on SBI

Mumbai: Analysts at brokerages raised their price targets on State Bank of India despite the lender's June quarter profits missing expectations. The stock fell 2.1% to close at ₹520.10 on Monday.

The average of the six analysts' price targets taken by ET implies a 24% jump in SBI shares over the next 12 months.

While some analysts cut their earnings expectations from SBI for FY23 following the disappointing quarter, others retained their bullish ratings citing cheaper valuations.

Morgan Stanley said SBI's valuations at one time FY24 book are attractive. CLSA increased its price target on the stock to factor in the higher price targets of its subsidiaries.

"SBI outperformed peers by >30ppts over the past 18 months and its current 1.1 times 1-year forward book valuation is getting closer to fair levels now," said CLSA's analysts.

HSBC raised its price target on SBI citing a stronger loan growth outlook and higher earnings per share .