HSBC Holdings (HSBC) PT Raised to $50 at CFRA
CFRA analyst Firdaus Ibrahim raised the price target on HSBC Holdings (NYSE: HSBC) to $50.00 (from $43.00) while maintaining a Buy rating.
The analyst comments "We raise our 12-month target price to USD50 (from USD43), reflecting a P/B of 1.1x, above U.K. banks peer average P/B of 0.7, justified in our view by its superior ROE profile. We cut our earnings per ADS forecast to USD6.00 (from USD7.25) for 2024 to account for recent acquisitions and disposals. In its Q1 2024 update, HSBC's pre-tax profit fell 2% to USD12.7 bln but was higher than USD12.6 bln expected by consensus as compiled by the company. The result included acquisition and disposal impacts. Net interest income was down 3% to USD8.7 bln, mainly reflecting deposit migration, with net interest margin down 6 bps to 1.63%. This was partly mitigated by higher trading income in Global Banking & Markets and higher fee income. HSBC reaffirmed its guidance for 2024 and declared an interim dividend of USD0.10 per share, special dividend of USD0.21 per share, and initiated USD3.0 bln share buyback, which shows the company's commitment to continue rewarding its shareholders, in our view. Maintain Buy."