SBI Card trades lower as Morgan Stanely maintains equal weight call on decline in active credit cards in January

SBI Card share price:  Shares of SBI Card in Monday's (February 26) traded lower by over 1 per cent as global brokerage Morgan Stanley maintained an 'equal weight' view' on the stock with a target of Rs 750.

The equal weight rating symbolises that the stock's performance will be in line with the index.

The brokerage maintains that the company saw a decline in the number of active credit cards in January by 96 basis points on year and 17 basis points on month, with their market share at 18.77 per cent. However, monthly credit card spending rose 18.4 per cent on-year for January, while the same was at 17.7 per cent in the previous month.

Further from the credit card spending data, it is highlighted that spending for SBI Card, Axis, and ICICI Bank increased 5–6 per cent per cent on-month.

Additionally, while card spending is showcasing good momentum, with growth of 29 per cent in the first 10 months of FY24, SBI Card registered the highest spending of over 30 per cent among all major credit card companies.

The stock of SBI Card has underperformed, with a negative return of 1 per cent in the last one year as against Nifty Financial Services' return of over 15 per cent.

The consensus recommendation from 25 analysts for SBI Cards and Payment Services is Hold, with 5 of them giving a 'strong buy' recommendation, Trendlyne data shows.