Macquarie has rejigged its stance on several frontline stocks, upgrading SBI, Paytm and key life insurers, while turning cautious on select banking and payments names.
1 / 8Brokerage firm Macquarie has upgraded State Bank of India (SBI) to ‘Outperform’ from ‘Underperform’. The brokerage has raised its price target on SBI to ₹1,150, implying an upside of 15% from Friday’s closing price.
2 / 8Macquarie has also upgraded Paytm to ‘Neutral’ from ‘Underperform’. The price target has been raised to ₹1,265, which implies a downside of around 2% from the stock’s last close.
3 / 8HDFC Life Insurance Company has been upgraded to ‘Outperform’ from ‘Underperform’. Macquarie has increased the price target to ₹900, indicating an upside potential of 20%.
4 / 8SBI Life Insurance Company has been upgraded to ‘Outperform’ from ‘Neutral’. The brokerage has raised the price target to ₹2,360, implying a 14% upside.
5 / 8On the downside, Macquarie has downgraded Bandhan Bank to ‘Underperform’ from ‘Outperform’. The price target has been cut to ₹130, indicating a downside of 10%.
6 / 8SBI Cards and Payment Services has also been downgraded to ‘Underperform’ from ‘Neutral’. The brokerage has lowered the price target to ₹750, which implies a downside of 13%.
7 / 8Macquarie expects banks to deliver earnings growth of over 15% in FY27, driven by improving margins, falling operating costs, and lower credit costs. The brokerage added that valuations across the sector remain reasonable.
8 / 8Macquarie said it now prefers PSU banks and life insurance companies. Large PSU banks are expected to deliver a sustainable return on equity of 13-14%, while life insurers are likely to see improvement in value of new business margins and growth.
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