InvestorQ : What led to CLSA upgrading the price target for SBI?
Archita Jajjoo made post

What led to CLSA upgrading the price target for SBI?

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Niti Shenoi answered.
5 months ago
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CLSA has increased its target price for SBI from Rs.330 to Rs.360. After the latest rally in SBI, the upside target still offers 40% appreciation on the stock. CLSA, in its note, has underlined that SBI still has a lot of hidden value even after rallying 29%.

Compared to other large banks, SBI is still available at very humble valuations. For example, it quotes at 0.5 times FY22 core P/B when larger banks attract P/B of 4.0 to 4.5. The note also expects that the worst of the asset quality issues may be behind the bank.

The upward revision in target price factors in potential upside in earnings and limited risks to capital adequacy. Sum of parts is yet to be factored fully in the price.
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