Analyst Emma Xu from Bank of America Securities reiterated a Buy rating on HSBC Holdings (HSBA – Research Report) and increased the price target to HK$101.40 from HK$93.05.
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Emma Xu has given her Buy rating due to a combination of factors including HSBC Holdings’ strong financial performance and promising future guidance. The bank reported a 9% beat on its underlying profit before tax for the fourth quarter, attributed to higher income and efficient cost management. This performance exceeded market expectations, reinforcing confidence in the bank’s ability to deliver sustained growth.
Furthermore, HSBC’s management provided positive guidance for the coming years, particularly highlighting the wealth sector as a key area of growth. With ambitious targets for return on tangible equity and cost savings through reorganization, HSBC is well-positioned to achieve mid-teens ROTE from 2025 to 2027. The potential for significant upgrades in consensus estimates, especially in the wealth and personal banking sector, underpins Xu’s optimistic outlook and supports the Buy rating.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a £9.54 price target.
Based on the recent corporate insider activity of 109 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HSBA in relation to earlier this year.