Buy State Bank of India, target Rs 290.0 : Motilal Oswal Financial Services

Motilal Oswal Financial Services has Buy call on State Bank of India with a target price of Rs 290.0. The current market price of State Bank of India is 257.45. Time period given by analyst is Long Term, when State Bank of India price can reach defined target. As a merged entity, State Bank will become 24%+ market share entity in the system. In Motilal Oswal's iew, State Bank of India may not be an acquirer in PSU bank consolidation now, considering integration risk related to large mergers and significant concentration in the system. Motilal Oswal values State Bank on a consolidated basis. As integration cost and dilution associated with the merger is not meaningful, it does not lead to a change in target price.