[ET Net News Agency, 20 April 2018] Credit Suisse lifted its target price for HSBC
(00005) to HK$77 from HK$65.8, and upgraded its rating to "neutral" from "underperform".
The research house said a supportive macro back-drop and Forex tailwind should allow
HSBC to report good 1Q results, and net interest margins (NIM) could expand to 1.67%.
Credit Suisse does not expect any exceptional news ahead of the "Strategy Update", to be
announced on or before 1H18 results on 6 August, nor a buyback announcement given AT1
issuance to date (US$4.15bn) is short of US$5-7bn guidance. It maintained its estimated
US$3bn buyback for 2H 2018.
HIBOR has spiked on intervention by HKMA to support HKD, which should boost HSBC's top
line (+3% net interest income for +100 bp) and bottom line (4% of PBT), the research house
said. (KL)