UBS raises HSBC price target

UBS raised its price target on HSBC on Wednesday to 625p from 600p as it upgraded its forecasts following the company’s first-quarter results.

UBS raised its diluted earnings per share estimate for this year to $0.84 from $0.78 to incorporate the beat from better trading revenues and lower impairments.

Commenting on the bank’s review of whether to leave Britain, UBS said there were several questions that needed to be answered before fundamental decisions can be made regarding domicile.

“While a retrenchment to its historic Hong Kong base might make near-term financial sense, the question is what does it mean for strategy in terms of the UK business, the investment banking balance sheet, the logic of the broader global footprint and its competitive position relative to other Chinese banks,” said UBS.

UBS maintained its rating on the stock at ‘neutral’.