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Investing.com - Goldman Sachs downgraded SBI Cards and Payment Services (NS:SBICARD) from Buy to Neutral with a price target of INR1,006.00, citing the stock’s significant price appreciation.
The investment bank noted that SBI Cards shares have risen 40% year-to-date, substantially outperforming both the BSE’s 7% gain and the Bank Nifty’s 12% increase as of May 2025.
Goldman Sachs attributed the rally to SBI Cards’ improved performance in early-delinquencies and better net interest margin outlook, driven by sharper interest rate cuts in the system and increased market share in card spending.
The strong price performance has led to a sharp re-rating of SBI Cards’ valuation multiple, which now stands at more than one standard deviation above its historical average, according to the investment firm.
Goldman Sachs highlighted key investor concerns including potential loan growth revival, as the industry’s credit card loan growth remains slow at 8.5% year-over-year as of May 2025, and questions about conversion from spending to interest-bearing loans and potential improvement in credit costs during this cycle.
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