Citi has released a research report updating its outlook on HSBC Holdings (00005), lifting its price target from HK$165.5 to HK$172 while reaffirming a "Neutral" rating on the stock.
In its latest analysis, the firm has refreshed its assumptions for the U.S. Federal Reserve and the Bank of England, now projecting terminal interest rates of 4.75% and 4.25%, respectively. This revision has driven an upgrade to the bank's net interest income forecasts.
Consequently, Citi has raised its earnings per share estimates for HSBC Holdings for the 2026 to 2028 period by anywhere from 0% to 3%, which stands 0% to 5% above current market consensus.
The firm anticipates a share price return of 8.0%, which, when combined with an expected dividend yield of 4.8%, points to a total shareholder return of approximately 12.8%.
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