[ET Net News Agency, 8 August 2019] Citi Research lifted its target price for Hang Seng
Bank (HSB)(00011) to HK$195 from HK$180 driven by a lower cost of equity assumption of
8.14% from 8.5% earlier. Citi also upgraded its rating to "buy" from "neutral".
After a recent share price pullback, HSB's dividend yield has reached an attractive
level of 4.6%, which limits further downside, said the research house.
Macro headwinds warrant investors to stay cautious on HK banking sector, and HSB is the
most defensive among domestic HK banks, it added.
Citi said a big downside risk to its positive view on HSB is falling rates environment.
If HIBOR were to fall following Fed rate cuts, HSB could face the most downward NIM
pressure. Based on Citi's sensitivity, every 25bps lower rates would result in 10bps NIM
compression and up to 5% EPS cut at HSB. (KL)
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00011 HANG SENG BANK
Nominal 
95.750 +0.200 (+0.209%) Others
08/08/2019 15:12
{I-bank focus}Citi upgrades Hang Seng Bank (00011) to HK$195
| Remark: | Real time quote last updated: 18/04/2024 09:03 |
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