SBI Card down 2.42% after Goldman Sachs’s “Sell” initiative

SBI Cards and Payment Services slips 2.42% after Goldman Sachs initiates “Sell” rating for the stock. 

The brokerage firm sees headwinds in the form of intense competition and increasing regulatory requirements.

Along with this, increase in credit losses is another major concern. 

It expects a moderate earnings growth of 18% in FY22-25E vs. 27% in FY17-21. 

Another area of concern being expensive valuations. The company sets a target price of Rs. 654 which is about 28% downside from the current price of Rs.904.55.