SBI Cards shares in focus as UBS upgrades stock to ‘neutral’, raises target price to Rs 800

Shares of SBI Cards and Payment Services may remain in focus on Friday after the global brokerage firm UBS upgraded its rating on the stock ‘Neutral’ from an earlier ‘sell’ and raised its target price to Rs 800 from Rs 600.

The brokerage firm's increased target price, suggests that it sees an upside potential of 8.6% in the stock.

The brokerage firm cited signs of stabilization in delinquencies and improved underwriting standards as key factors behind the upgrade.


Furthermore, UBS has lowered its credit cost estimates for FY26 and FY27 to 7.3% and 7.1%, respectively. This reflects the firm's expectation of improving asset quality for SBI Cards

Consequently, UBS has raised its earnings per share (EPS) estimates for FY26 and FY27 by 4% and 5%, respectively.

The brokerage firm highlighted that key catalysts for future upside include a sustained decline in overdue payments and continued outperformance compared to its peers. However, UBS emphasized that it is awaiting sustained improvement in delinquency trends before adopting a more bullish stance on the stock.

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SBI Cards and Payment Services share price history

The shares of SBI Cards and Payment Services have increased by 3.5% in the last 6 months and by 2.11% in the last 3 months. The same have declined by nearly 1.5% in the last one year, according to the BSE analytics.

SBI Cards and Payment Services technical performance

SBI Cards and Payment Services shares are currently placed above all its significant exponential moving averages (EMAs) and oscillating near the 65 mark on the RSI.

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