Deutsche Bank cuts HSBC to 'hold' after share price gains
Deutsche Bank downgraded HSBC on Monday to ‘hold’ from ‘buy’ but lifted the price target to 910p from 830p after recent share price gains.
Source: Sharecast
HSBC doesn't have to do a lot to maintain a healthy mid-teens return on tangible equity after many years of restructuring, Deutsche said.
"We expect any incremental restructuring will be relatively small and aimed at maintaining ROTE levels against a falling rate environment across a global cost base.
"If the scale of restructuring is contained, then we believe our capital return expectations could remain unchanged- one of the key attractions of the stock."
However, DB said that after a "substantial" increase in share price, the value "is no longer there".
At 1055 GMT, the shares were down 2.2% at 826.80p in a sharply lower UK market.
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