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.
