HSBC upgraded by Credit Suisse on expectations for solid first-quarter results

HSBC branch in SingaporeHSBC branch in Singapore

Credit Suisse upgraded HSBC to Neutral from Underperform, pointing to expectations that first quarter results will be “supportive.”

“A supportive macro back-drop and Forex tailwind should allow HSBC to report good first-quarter results, and net interest margins (NIM)
could expand to 1.67 percent,” Credit Suisse said in a note on Friday, adding there was upside risk to its 2018 NIM forecast of 1.67 percent.

It forecast adjusted profit before tax of US$5.703 billion, with revenue of US$13.6 billion. HSBC is expected to report earnings on May 4.

“Regarding future capital return, we continue to expect a US$3 billion buyback in the second half of 2018,” it said.

It raised its target price to HK$77.00 from HK$65.80.

In late afternoon trade on Friday, HSBC shares were up 0.79 percent at HK$76.90.