Shore Capital Reiterates 'Sell' Rating on HSBC, Sees 13% Downside to 1,335p Target
Broker Shore Capital reiterated its 'sell' recommendation on HSBC Holdings PLC (LSE:HSBA, NYSE:HSBC), warning that the shares' "punchy valuation" more than reflects the bank's confident outlook. Analyst Gary Greenwood maintained his 1,335p target price, implying 13% downside from the current level. Shore Capital cautioned that HSBC is currently benefiting from an "optimal interest rate environment" that may be difficult to replicate, and noted the bank's capital allocation prioritises dividends over buybacks, suggesting management does not view the shares as materially undervalued. HSBC shares have risen 62% over the past 12 months.
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