Bank of America Securities analyst Perlie Mong reiterated a Hold rating on HSBC Holdings today and set a price target of p1,160.00.
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Perlie Mong’s rating is based on a combination of factors that reflect HSBC Holdings’ current financial performance and market conditions. The bank reported strong third-quarter results, with profit before tax excluding notable items surpassing expectations by 9%, primarily due to a 5% increase in income. This income boost was evenly distributed between net interest income and non-interest income, with the Wealth segment showing significant growth.
Despite these positive results, the stock is trading at a valuation that is considered reasonable but not particularly cheap, at approximately 1.4 times the forecasted 2026 earnings for a return on tangible equity of about 16%. Additionally, with the market anticipating several US interest rate cuts in the coming year, the potential risks and rewards appear balanced. Consequently, Perlie Mong has reiterated a Neutral stance, adjusting the price objective to HKD121.00 to account for improved profitability.
In another report released today, UBS also maintained a Hold rating on the stock with a £9.80 price target.