J.P. Morgan and Goldman Sachs raised their target prices for HSBC Holdings in recent reports, citing stronger banking net interest income and earnings growth. J.P. Morgan increased its target price nearly 10% from HK$182 to HK$200 while maintaining an 'Overweight' rating, driven by expectations that management will raise 2026 net interest income guidance from approximately $46 billion to approximately $47 billion USD. Goldman Sachs lifted its 12-month target price nearly 10% from HK$165 to HK$181 with a 'Buy' rating, projecting second-quarter underlying profit before tax of $10.2 billion USD. The upgrades reflect analyst confidence in HSBC's revenue momentum and strategic execution in the Hong Kong banking market.
J.P. Morgan Raises HSBC Earnings Forecasts on Net Interest Income Growth
J.P. Morgan raised HSBC's 2026 to 2028 earnings per share forecasts by approximately 2%, primarily driven by stronger banking net interest income. The firm expects management to raise 2026 net interest income guidance from approximately $46 billion to approximately $47 billion USD. J.P. Morgan noted that fee income growth momentum is slightly strengthening, though partially offset by rising costs.
J.P. Morgan Upgrades Standard Chartered Target Price to HK$295
J.P. Morgan raised Standard Chartered's target price 7% from HK$275 to HK$295, maintaining an 'Overweight' rating. The adjustment reflects strong revenue offsetting elevated cost growth, with the firm forecasting 2% net interest income growth for Standard Chartered this year.
Goldman Sachs Predicts HSBC Share Buyback Resumption
Goldman Sachs expects HSBC's second-quarter underlying profit before tax to reach $10.2 billion USD, representing a 25% year-on-year increase and 2% quarter-on-quarter growth, 4% above market expectations. The quarter-on-quarter increase is primarily attributed to lower credit costs, with no additional provisions expected related to Middle East conflicts. Banking net interest income is projected to grow 3% quarter-on-quarter, supported by a slight rise in Hong Kong Interbank Offered Rate.
Goldman Sachs predicts HSBC will resume share buybacks this quarter after a three-quarter suspension due to the Hang Seng acquisition. The firm forecasts HSBC will announce a $1.5 billion share buyback program in second-quarter results, with the Common Equity Tier 1 capital ratio maintaining a robust level of approximately 14% after completion.
FAQ
What target price did J.P. Morgan set for HSBC stocks?
J.P. Morgan raised HSBC's target price from HK$182 to HK$200, representing a nearly 10% increase, while maintaining an 'Overweight' rating.
Why did Goldman Sachs raise its HSBC target price?
Goldman Sachs raised HSBC's 12-month target price from HK$165 to HK$181 based on expectations of second-quarter underlying profit before tax reaching $10.2 billion USD, 25% higher year-on-year and 4% above market expectations, driven by lower credit costs and rising net interest income.
