Barclays analyst Aman Rakkar downgraded HSBC to Equal Weight from Overweight with a price target of 740 GBp, down from 800 GBp. The analyst cites expectations of negative earnings momentum and risks to consensus estimates for the downgrade. The firm’s work on HSBC’s expanded hedging program suggests the bank’s “lines of defense” are not enough to offset rate cuts. It prefers domestic UK banks NatWest and Lloyds to HSBC.
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