HSBC: UBS upgrades stock
(CercleFinance.com) - On Wednesday UBS upgraded its rating on HSBC shares from "neutral" to "buy", having increased its target price for them from 450p to 485p.
In its comments, the broker believes that it has become dangerous to underweight the bank's stock, given its underperformance of nearly 50% over the past two years.
The broker explains this discrepancy by concerns regarding interest rates, real estate in China and geopolitical factors.
However, UBS expects HSBC's financial performance to turn around in 2022, which could highlight its "exceptionally attractive" valuation, especially if interest rates rise.
The broker, which also highlights the availability of surplus capital, excess credit reserves and exposure to growth in Asia, says it currently sees upside potential in the share.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its comments, the broker believes that it has become dangerous to underweight the bank's stock, given its underperformance of nearly 50% over the past two years.
The broker explains this discrepancy by concerns regarding interest rates, real estate in China and geopolitical factors.
However, UBS expects HSBC's financial performance to turn around in 2022, which could highlight its "exceptionally attractive" valuation, especially if interest rates rise.
The broker, which also highlights the availability of surplus capital, excess credit reserves and exposure to growth in Asia, says it currently sees upside potential in the share.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.