Analysts cut earnings estimate, target price on SBI Card post weak Q2 show

SBI Card has underperformed its peers amid company-specific/sector issues pertaining to market share, revolver share, and merchant discount rate (MDR)-related challenges

Analysts have cut earnings estimates, and target price for SBI Card and Payment Services (SBI Card) post its weaker-than-expected September quarter show. Following the action, the stock tanked 7 per cent to Rs 800 on the BSE in Friday’s intra-day trade, as against a 0.3 per cent gain in the benchmark S&P BSE Sensex. 
 

That said, while analysts expect the stock’s underperformance to continue in the near-term, they remain fairly bullish on the company’s long-term prospects. 

“Following a weak July-September quarter (Q2FY23), we expect the stock to underperform in the short-term. Even so, we maintain ‘BUY’ as we view SBI