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