Deutsche Bank has upgraded its price target for HSBC Holdings PLC (LSE:HSBA) to 880p from 760p and maintained its 'buy' recommendation following the bank's annual results statement.
Its excess capital position and expected capital return in 2023 are among the factors cited in the upgrade, as well as a projected return on tangible equity (ROTE) of 14% from 2023 to 2025, which is above the bank's guidance of 12%+.
Deutsche Bank also expects non-interest income to drive growth in earnings per share (EPS), with estimates increasing by 6% and 9% in 2023 and 2024, respectively.
Despite a strong start to the year for the share price - the shares are up 19% since the start of 2023 - Deutsche Bank still sees good value in HSBC's shares.
Of the 22 investment banks and brokerages covering HBSBC, 13 are positive on the stock. The consensus price target is 702p, around a 10% premium to the current price of 629p.