HSBC: RBC upgrades shares to 'sector perform'

(CercleFinance.com) - RBC Capital Markets on Tuesday upgraded its rating on HSBC to "sector perform" from "underperform," also raising its target price for the share to 420 pence from 370 pence.


Noting that HSBC's share price is highly correlated (83%) to GDP growth, the broker pointed out that the economic outlook for the bank's geographical footprint now looks "relatively favourable" with US/China relations likely to thaw, hence supporting growth.

"A number of the arguments against owning HSBC have softened, however with consensus already giving credit for progress on costs, a valuation in line with historical averages and ESG potential headwinds, we rate the shares sector perform,' RBC said in a note to clients.

HSBC shares, which have fallen by 32% over the last 12 months, are up 0.7% on Tuesday in London.

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.