State Bank of India shares could jump nearly 40% after its September quarter results, according to bullish analysts. While 42 experts have a buy rating, the stock fell 1.7% on Tuesday to ₹970.25. Macquarie said, "SBI's loan growth and asset quality are healthy," while others noted resilient margins.

The most bullish analysts covering India's largest lender, State Bank of India, expect the stock to jump nearly 40% from current levels after its September quarter results.

None of the 49 analysts who cover SBI have a "sell" rating on the stock. 42 of them have a "buy" rating and the other seven have a "hold" recommendation. The average consensus estimate of price targets implies an upside potential of 27% for the stock from current levels.

Macquarie Cites Valuation Comfort

Macquarie maintained its "outperform" rating on SBI with a price target of ₹1,220.

The global investment banking firm called SBI's loan growth and asset quality "healthy", and its margins "resilient." It added that the ECL impact is manageable for a bank of SBI's scale.

At 1.3 times its one-year forward estimated price-to-book-value, SBI's valuations look comfortable as against its expected Return on Assets (RoA) of 1%, Macquarie said.

CLSA Among Highest Targets

CLSA has an "outperform" rating on SBI with a price target of ₹1,325, which is among the highest on the street for the stock.

The firm called SBI's loan growth "broad-based", deposit growth "healthy", with CASA growth being the only "soft spot."

SBI should remain largely unaffected by the new insurance distribution guidelines, as distribution income is less than 3% of its Profit Before Tax (PBT), CLSA wrote in its note.

HSBC Cuts SBI Price Target

HSBC has maintained its "buy" rating on SBI but cut its price target to ₹1,220 from ₹1,310 earlier.

It justified the price target cut to build in some discount for a slower loan growth, and lower multiples for some subsidiaries.

However, HSBC has raised its Earnings Per Share (EPS) estimates for SBI by 4% to 8% for financial year 2027-2029 on a stronger-than-estimated NIM momentum, and operating leverage playing out.

Citi has maintained its "buy" rating on SBI with a price target of ₹1,300.

Bernstein has a "market-perform" rating on SBI with a price target of ₹1,300, stating that the headline earnings growth masks a softer underlying quarter with lower credit costs and stake sale gains supporting profitability.

Shares of State Bank of India ended 1.7% lower on Tuesday after the results announcement at ₹970.25. The stock is down 1.5% so far for the year.