HSBC: Deutsche Bank no longer Buy

(CercleFinance.com) - Deutsche Bank announced on Monday that it had downgraded its recommendation on HSBC shares from 'buy' to 'hold', with a price target raised from 830 to 910 pence.


In a research note, the analyst explains that he expects the remaining restructuring measures to be taken by the bank to be 'relatively limited'.

In this sense, these initiatives should simply enable the institution to maintain return on tangible equity (ROTE) at current levels in the face of falling interest rates, he stresses.

If the scale of the restructuring is to remain contained, as he expects, then expectations of capital redistribution - one of the share's key strengths - should also remain unchanged, the intermediary continues.

In view of the recent rise in the share price, Deutsche Bank says, however, that it no longer perceives any potential value creation at current levels, the note adds.

In a study also published in the morning, RBC maintains its 'performance in line with the sector' opinion and raises its target from 790 to 900 pence, while deeming the market consensus established for fiscal years 2024, 2025 and 2026 'too high' at present.

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