SBI Card share price: On Monday, January 6, SBI Card shares jumped 5% to an intraday high of Rs 760.15. This surge came after Nomura and domestic brokerage Nuvama Institutional Equities gave a 'buy' recommendation to the stock and raised the target price. By 12 noon, the BSE was trading 204.55 points lower and the NSE was down 374 points.

Nomura Report
Nomura has given a target price of Rs 825 for SBI Cards, which indicates an upside of 14% from the previous close of Rs 723.10. They have given a 'Buy' rating to SBI Cards, mainly due to asset quality improvement and increase in new card additions. According to Nomura
 

• Asset quality problems may ease in the coming quarters.
• Credit cost may decline to 7.5%/7% by FY26/27, from 9% in FY25.
• Net card additions saw an increase in November 2024, the highest since December 2023.
• SBI Card may get a big benefit from the possible interest rate cut in FY26.

Nuvama report

Nuvama has upgraded SBI Cards rating from 'Reduce' to 'Buy' and raised the target price from ₹620 to ₹850.

According to Nuvama
 

• There are signs of improvement in credit costs.
• Credit costs were at their highest in Q2FY25 but are expected to improve from Q4FY25.
• SBI Cards credit cost trend will be better than other players as its weak credit cycle has already started.
• A possible rate cut by RBI could prove to be positive for SBI Cards.

By 11 am, SBI Card's stock was trading 2.5% higher at Rs 741.05. At around 12 noon, its stock was trading 0.85 per cent higher.