HSBC maintains its “overweight” rating on the stock, believing that the market has already priced in the negative factors and that future earnings and interest rates will provide support.

A team of HSBC strategists led by Max Kettner released a research report maintaining a “maximum overweight” rating on equities. The team noted that despite a 40% surge in oil prices this year, a sell-off in tech stocks, and tensions in the Middle East, global stock markets remain near historic highs, demonstrating resilience beyond expectations. HSBC believes that the market has already priced in most of the negative factors, and that continued better-than-expected corporate earnings and a future decline in U.S. Treasury yields will be the main catalysts driving further gains in the stock market.