HSBC: shares rise after analyst upgrade
(CercleFinance.com) - HSBC shares were up 0.
5% at 576.6 pence on Monday after an analyst at Jefferies upgraded the stock, citing the potential benefits of a restructuring plan.
HSBC may be able to eliminate 25% of costs in US its and Europe Global Banking and Markets (GBM), and 50% of costs in the corporate centre, with a key driver being the disposal of US and French retail banking, which together account for a material 8% of group costs, Jefferies wrote in a research note.
According to the broker, a restructuring plan suggests 22% earnings revision potential, which has prompted the analyst to upgrade the stock from "hold" to "buy."
Alongside this upgrade, the broker has raised Its target price from 691 pence to 790 pence.
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