Ambit, Investec, Motilal Oswal, Kotak Institutional, Nomura, Emkay Global and CLSA have maintained buy ratings while Credit Suisse has retained an outperform stance.
The brokerage said risk-reward balance is attractive after the 38% fall in the stock year-to-date.
Brokerages maintained buy ratings on SBI shares and raised target prices after the lender reported better-than-expected earnings for the September quarter.
Ambit, Investec, Motilal Oswal, Kotak Institutional, Nomura, Emkay Global and CLSA have maintained buy ratings while Credit Suisse has retained an outperform stance.
Morgan Stanley has upgraded the stock to overweight from equal weight and raised target price to Rs 280 from Rs 215.
While Morgan Stanley's new target price suggests 30% upside for the stock, the highest among brokerages, others have raised targets by 6-20%. "F21 (FY21) core P/B (price-to-book) is now 0.35 times, nearly 2 SD (standard deviation) below the 10-year mean despite improving macro conditions. Moreover, asset quality and NIM trends have been better than we expected, and we project an ROE (return on equity) uptrend," said Morgan Stanley.
The brokerage said risk-reward balance is attractive after the 38% fall in the stock year-to-date.
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CLSA said while SBI is a PSU bank, it has not lost share in the last 10 years and unlike peers its capital raises are not book-dilutive.
"With a big core PPOP (pre-provision operating profit) beat and stronger-than-expected asset quality, SBI valuations should start to mean-revert as uncertainty around asset quality decreases," said CLSA.
