Home / Business and Economy / SBI Correction a Buy Signal: CLSA Reaffirms Outperform
SBI Correction a Buy Signal: CLSA Reaffirms Outperform
29 May
Summary
- CLSA reiterated 'Outperform' rating for SBI with a Rs 1,275 target price.
- A recent 10%-12% dip in SBI shares is seen as a buying opportunity.
- Deposit repricing is expected to boost SBI's NIM by 8 basis points.
Global brokerage CLSA maintains a positive outlook on State Bank of India (SBI), reiterating an 'Outperform' rating and a target price of Rs 1,275. This suggests a significant upside potential from its recent closing price of Rs 967.30 on May 27, 2026.
CLSA views the recent 10% to 12% decline in SBI's share price as a compelling buying opportunity. The brokerage acknowledges concerns regarding net interest margins (NIMs) but notes that such deviations are historically infrequent for SBI, occurring in only one out of every four quarters. Past instances have shown the stock recovering strongly after temporary dips.
Furthermore, CLSA predicts that improved deposit repricing will likely increase SBI's NIM by around 8 basis points in the near future. This is expected to bolster profitability in upcoming quarters. The firm's confidence stems from SBI's robust liability franchise, improving operational metrics, and its superior ability to manage interest rate cycles compared to its peers.
