Jefferies initiates SBI Funds Management coverage with Buy; sees 26% upside

Jefferies initiated coverage on SBI Funds Management with a Buy rating and a Rs 710 price target, implying 26% upside. The brokerage expects operating profit to grow at a 15% CAGR through FY29, supported by rising mutual fund assets, SBI’s distribution network and operating leverage. Strong B30 presence and lower operating costs further support the asset manager’s growth