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Investments in Indian Equity and Research => Equity Investments, Fundamental Research and Sectors Review => Sensex and Nifty Company Analysis => Topic started by: komal on December 15, 2014, 01:46:38 PM

Title: Morgan Stanley Downgrades SBI
Post by: komal on December 15, 2014, 01:46:38 PM

Morgan Stanley in a Report has Moved SBI to UNDERWEIGHT  with a Target price of Rs 250. MS in the Report said,

Quote

Management is doing well at trying to improve ROE. But at 1.4x book, the market is pricing in a very strong economy and 15-16% sustainable ROE. This is unlikely to be achieved as leverage declines (higher capital) and ROA normalizes. We expect sustainable ROE to average ~13%. Move to UW.