JP Morgan Raises HSBC Price Target Following Q1 Report

With an annual dividend yield of 4.14%, HSBC Holdings plc (NYSE:HSBC) is included among the 12 Best Blue Chip Dividend Stocks to Buy Now.

HSBC Holdings plc (NYSE:HSBC) is one of the largest banking and financial services institutions in the world, serving millions of customers through its four global businesses.

On May 9, JPMorgan increased its price target on HSBC Holdings plc (NYSE:HSBC) from £1,360 to £1,370, while keeping a ‘Neutral’ rating on the shares. The revised target represents an upside of almost 3% from the current price level.

HSBC Holdings plc (NYSE:HSBC) reported mixed results for its Q1 on May 5. Europe’s largest lender reported pre-tax profit of $9.4 billion for the quarter, falling behind estimates on the back of higher expected credit losses and other impairment charges. However, the company’s revenue grew by over 5% YoY to $18.6 billion and exceeded expectations on stronger wealth fees and other income.

HSBC Holdings plc (NYSE:HSBC)’s expected credit losses surged to $1.3 billion, up $400 million compared with the same period a year earlier. The losses were driven by the “fraud-related” exposure to a financial sponsor in the UK and provisions owed to a worsening economic outlook due to the ongoing US-Iran war.

That said, HSBC Holdings plc (NYSE:HSBC) raised its banking net interest income guidance to around $46 billion for full-year 2026, up from its prior forecast of at least $45 billion, reflecting an improved interest rate outlook.

While we acknowledge the risk and potential of HSBC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HSBC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Electric Utility Stocks to Buy for the Data Center Power Surge and 10 Best Fortune 500 Stocks to Buy According to Analysts

Disclosure: None. Follow Insider Monkey on Google News.