Bank of America Securities analyst Perlie Mong has reiterated their bullish stance on HSBA stock, giving a Buy rating today.
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Perlie Mong has given his Buy rating due to a combination of factors, starting with HSBC’s robust Q4 performance, where underlying profit before tax exceeded market expectations largely on the back of stronger-than-forecast net interest income in the banking business. Operating costs and fee income tracked consensus, credit charges were slightly better, and Hong Kong commercial real estate provisions were negligible, all reinforcing confidence in earnings quality and capital return via the announced dividend.
Moreover, management’s new guidance for 2026, including a higher net interest income target, tighter cost growth and a controlled level of credit losses, points to meaningful upside to current profit forecasts and supports an increased price objective. In addition, the proposed Hang Seng Bank privatisation is expected to generate material financial benefits and synergies by 2028, offering incremental value beyond buybacks and underpinning Mong’s positive stance on HSBC’s medium-term profitability and shareholder distributions.
In another report released today, Barclays also maintained a Buy rating on the stock with a £14.00 price target.