Keefe Bruyette Turns More Positive on HSBC, Citing Hong Kong Strength

HSBC Holdings plc (NYSE:HSBC) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

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On December 17, Keefe Bruyette upgraded HSBC Holdings plc (NYSE:HSBC) to Outperform from Market Perform and lifted its price target to 1,240 GBp from 990 GBp. The firm points to HSBC’s continued strength in Hong Kong. Its forecasts now sit ahead of broader market expectations.

That view lines up with recent developments in the region. On December 15, Hong Kong’s Hang Seng Bank said an independent board committee found HSBC Holdings plc (NYSE:HSBC)’s $13.6 billion take-private offer to be fair and reasonable, as reported by Reuters. The committee recommended that minority investors vote in favor of the proposal.

Under the terms, HSBC Holdings plc (NYSE:HSBC) plans to buy the 36.5% stake in Hang Seng that it does not already own. When the deal was announced, chief executive Georges Elhedery told Reuters the move fits HSBC’s broader strategy of selective acquisitions alongside ongoing divestments.

Hang Seng has faced pressure in recent years. Its exposure to Hong Kong and mainland China’s property markets has weighed on performance. That strain may not ease soon. Debt-heavy developers and their lenders are bracing for tougher conditions, with bond maturities expected to rise by nearly 70% next year.

Founded in 1933, Hang Seng remains one of Hong Kong’s largest banks and a core part of the HSBC group. It serves roughly 4 million customers through digital channels and more than 250 branches across the city.

HSBC Holdings plc (NYSE:HSBC), meanwhile, operates on a far broader scale. The group serves over 40 million customers worldwide, ranging from individual savers to multinational companies and governments.

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