HSBC and Standard Chartered are best placed for a surprise revenue upside of 6% and 3% respectively in the upcoming financial services earnings season, according to equities analysts at Jefferies.
“We expect (HSBC) to announce the first of a new cycle of buybacks alongside first-quarter results on May 2,” said Jefferies, with estimations as high as US$2.5bn (£2bn).
As for Standard Chartered, “we expect management to reaffirm full-year net-interest-margin guidance” and given the stock’s 19% pullback from its 52-week high in March, “such a reiteration would be very welcome for existing and prospective shareholders”.
As for the remainder of the domestic banking big caps, Jefferies expects Barclays and NatWest to tow the forecast line while Lloyds Banking Group could pull “modestly ahead”.
HSBC and Standard Chartered both have a buy recommendation from Jefferies analysts, with respective price targets of 900p and 1,000p against publication prices of 575p and 642p.