Goldman Sachs' "sell" call on Friday sparked a decline in shares of State Bank of India (SBI), Indus Towers, and Vodafone Idea (Vi). However, Bharti Airtel's shares proved resilient, dodging the broad-based selloff as the US-based brokerage reiterated its positive stance on the telecom major.
Goldman downgraded the country's largest lender SBI, citing unfavourable risk-reward profile and risks to sustainability of return on assets (ROA). It said SBI's loan growth could slow going forward given the widening gap between deposit growth and loan growth. Further, it expects an increase in credit costs on rising slippages in MSME, agriculture and unsecured portfolios.
Shares of SBI fell 4.4 per cent to end at ₹783.
Goldman has lowered its price target from 841 to 742 for the stock, implying a 5.2 per cent downside from current levels. It has cut SBI's FY25-27 earnings estimates by 3-9 per cent and target multiple to 1.0x from 1.2x of 12month forward price-to-book.
Diese Geschichte stammt aus der September 07, 2024-Ausgabe von Business Standard.
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Diese Geschichte stammt aus der September 07, 2024-Ausgabe von Business Standard.
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