Goldman downgrades HSBC to 'neutral', slashes target price
Goldman Sachs has removed banking giant HSBC from its ‘conviction buy’ list and cut its recommendation on the stock to ‘neutral’, slashing its target price from 760p to 690p.
Banks
4,318.88
17:09 10/05/24
FTSE 100
8,433.76
16:34 10/05/24
FTSE 350
4,634.75
17:09 10/05/24
FTSE All-Share
4,586.29
16:50 10/05/24
HSBC Holdings
696.00p
16:40 10/05/24
Goldman said its investment case on HSBC was predicated on a strategic shift towards geographic streamlining and meaningful investment banking cuts.
“In our view, HSBC delivered on select aspects, but fell short on others, most notably on the potential for streamlining its sub-scale retail businesses, which we continue to see as key in addressing group returns,” Goldman said.
“Consequently, we no longer value select countries on a SOTP basis and downgrade HSBC’s shares to ‘neutral’.”
Nevertheless, Goldman said HSBC continues to offer an attractive dividend yield 5-6% on its estimates.
HSBC shares were down 0.2% at 576.1p by 10:26.