Zacks Investment Research upgraded shares of HSBC Holdings plc – ADR (HSBC) from NEUTRAL to OUTPERFORM on October 13, 2014, with a target price of $55.00.
We are upgrading our recommendation on HSBC to Outperform based on the successful implementation of its restructuring initiatives as evident by downward trends in operating expenses. However, the company reported dismal first-half 2014 results owing to a decline in revenues, partially offset by lower operating expenses and a fall in loan impairment charges. Top line was adversely impacted by subdued growth in Retail Banking and Wealth Management, and Global Banking and Markets segments. Moreover, sluggish revenue growth in the mature markets, dismal European economy, lower loan demand, higher litigation costs and stringent regulations continue to remain near-term concerns. Nevertheless, we believe that diversified revenue sources and a strong capital position will continue to aid bottom-line growth.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on HSBC Holdings plc – ADR (HSBC),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment