(News Bulletin 247) – UBS announced on Tuesday that it had downgraded its recommendation on HSBC from ‘buy’ to ‘neutral’ with a price target reduced from 710 to 615 pence.
In a research note, the analyst recalls that the title of the banking group began to outperform in October 2021, due to its attractive valuation and its good positioning to play on the weakness of the dollar.
Since then, the share price has jumped 45% and shareholders have pocketed some 13% of market capitalization in the form of dividends, argues the intermediary.
While 72% of analysts covering the stock are now buying and the group says it anticipates a decline in its net interest income, UBS judges that the market consensus for 2025 is now too high, which – in addition to concerns surrounding Chinese growth – led him to rule out any continuation of this revaluation process.
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