[ET Net News Agency, 23 February 2018] J.P. Morgan lifted its target price for HSBC
Holdings (00005) to HK$88 from HK$80, and reiterated its "neutral" rating.
Following FY2017 results, the research house increased NII and total revenues by 3% in
2018 and 2019 driven by FX translation impacts from the EU and loan growth. Similarly, it
increased total operating costs by 8% and 11% in 2018 and 2019, due to FX translations. As
a result, PPOP has decreased by 3% and 7% in 2018 and 2019.
JPM also increased provisions by 13% and 2% in 2018 and 2019, due to higher provisions
against FY2017 consensus to produce a clean PBT increase of 4% and 1% in 2018 and 2019.
Adjusted EPS has been increased by 5% and 3% in 2018 and 2019, to 66c. It noted that the
adjusted EPS ex-BoCom (03328) contribution is 59c for 2018 and 2019. (KL)