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<Research> Citi: STANCHART (02888.HK) Valuation Not Expensive; Buyback Size May Fall Short of Mkt Expectations
Recommend 7 Positive 6 Negative 9 |
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Citi issued a report welcoming STANCHART (02888.HK)'s investor update, which elaborated on the differentiating factors of its business model and outlined how incremental investments will position the group for the future and drive structural revenue growth. STANCHART is currently trading at around 1.1x price-to-tangible book (P/TB), corresponding to a target return on tangible equity of over 15% by 2028 and a target revenue CAGR of 5% to 7%, suggesting that its valuation is not expensive. However, the broker expects initial market discussions to focus on STANCHART's cost trajectory and capital allocation priorities for 20272028. The above targets imply an acceleration in cost growth, while the size of share buybacks may fall short of market expectations, potentially limiting upward revisions to EPS forecasts and weighing on share price performance in the near term. The broker reiterated its "Neutral/High Risk" rating on STANCHART (STAN.L) in the UK market, with a TP of GBP19.75. (ha/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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