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UBS downgrades HSBC to Neutral, sees ‘tough sledding ahead’

UBS downgrades HSBC to Neutral, sees ‘tough sledding ahead’

UBS downgraded HSBC to Neutral from Buy with a price target of 615 GBp, down from 710 GBp. The analyst says the bank’s cyclical pressures are not reflected in consensus estimates, which makes them too high. HSBC’s guided decline in net interest income in the second half of 2023, downside risks from China-related loans, modest loan growth, a sell-side not factoring rate cuts into 2025 numbers and a buy-side which appears to “already like the stock a lot makes for tough sledding ahead,” the analyst tells investors in a research note.

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