SBI share price target goes up to Rs 1,300. What Jefferies, Morgan Stanley, BofA, other brokerages predict

Core Viewpoint - State Bank of India (SBI) reported a strong third-quarter net profit of ₹21,030 crore, exceeding estimates by 18%, driven by higher fee income and lower provisions, leading to bullish price targets from various brokerages, with some reaching as high as ₹1,300 [1][10]. Financial Performance - Net interest income increased by 9% year-on-year and 5% quarter-on-quarter to ₹45,190 crore, aligning with estimates [6][11]. - The net interest margin improved to 2.99%, with domestic margins rising to 3.12%, and the bank anticipates margins above 3% in fiscal 2026 and beyond [6][11]. - The loan book grew by 15.6% year-on-year and 6.1% quarter-on-quarter, while deposits increased by 9% and 2%, respectively [9][11]. Brokerage Ratings and Price Targets - Jefferies maintained a Buy rating with a price target of ₹1,300, up from ₹1,190, citing a 1.5x valuation on adjusted book value for March 2028 and projecting a 12% compound annual growth in core profit over fiscal 2026-28 [2][10]. - Motilal Oswal matched the ₹1,300 target, valuing the bank at 1.4 times fiscal 2028 adjusted book value plus ₹354 for subsidiaries, while raising earnings estimates by 3% and 4.3% for fiscal 2027-28 [3][10]. - Nomura raised its target price to ₹1,235 from ₹1,100, reflecting an improved return on equity outlook [7][11]. - JP Morgan maintained an Overweight rating and increased its price target to ₹1,250, revising fiscal 2026 earnings estimates by 7% [7][8][11]. - BofA Securities adopted a more cautious stance, maintaining a Neutral rating with a new price objective of ₹1,100, citing balanced risk-reward at current valuations [9][11]. Asset Quality and Capital Adequacy - The bank's asset quality showed improvement, with slippages moderating and credit costs remaining low at 29 basis points [3][11]. - The CET-1 capital adequacy ratio stood at 11%, indicating a healthy capital position [2][10].