Goldman Sachs upgrades SBI to 'Buy', ups target price by 54%; here's why

Seen as the "proxy of improving confidence in the financial sector", Goldman Sachs believes SBI's current stock valuation (0.2x FY21E BVPS) makes for an attractive entry point

The stock price of State Bank of India (SBI) has been gradually marching upwards since its recent low of Rs 150.85 apiece touched on May 22, 2020. Till Tuesday, the stock price has advanced 38 per cent on the BSE, as against 26.6 per cent gain in the benchmark S&P BSE Sensex, BSE data show. With Goldman Sachs upgrading the stock to 'Buy' from 'Neutral' stance adopted in March, the bank is poised for stellar gains going-forward.

Seen as the "proxy of improving confidence in the financial sector", Rahul Jain, head of India Research at Goldman Sachs, in a co-authored