HSBC upgraded to Overweight at JPMorgan on improving shareholder return

JPMorgan upgraded HSBC to Overweight from Neutral with a price target of HK$80, up from HK$66, citing improving shareholder return. The adjusted dividend yield/market cap is reaching 12%, which is an 840 basis points spread over 10-year UST yield. If the adjusted dividend spread normalizes to the 10-year mean of 440 basis points, this points to about 47% upside to the current share price, notes the firm.