JP Morgan reiterates StanChart as 'top pick' in sector
Analysts at JP Morgan reiterated their preference for StanChart's shares in the banking sector, keeping it as their 'top pick' while reiterating their 'overweight' recommendation and 850.0p target price.
The lender's topline performance, with revenues up by 7.0% year-on-year and 4.0% ahead of the consensus was "likely to stand out amongst peers", they said.
The investment bank also highlighted the board-based revenue strength, with commercial and investment banking revenues 13% ahead and those from retail up by 4%, alongside a 5% increase from cash management.
Income was higher across all regions too.
"We expect consensus upgrades following 3Q with management focused on 10% RoTE FY21 while noting growing headwinds from global growth and IR. StanChart remains our Top Pick."