Morgan Stanley Begins Coverage on HSBC (NYSE:HSBC)

Equities research analysts at Morgan Stanley initiated coverage on shares of HSBC (NYSE:HSBC) in a report issued on Wednesday. The firm set an “equal weight” rating on the financial services provider’s stock.

HSBC has been the subject of a number of other reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of HSBC in a research report on Monday, December 29th. Citigroup reissued a “buy” rating on shares of HSBC in a report on Friday, January 9th. Jefferies Financial Group restated a “hold” rating on shares of HSBC in a research report on Friday, October 10th. Keefe, Bruyette & Woods upgraded shares of HSBC from a “hold” rating to a “moderate buy” rating in a research note on Wednesday, December 17th. Finally, Zacks Research raised shares of HSBC from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 3rd. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, HSBC presently has an average rating of “Moderate Buy” and a consensus target price of $63.00.

HSBC Stock Performance

NYSE HSBC opened at $82.76 on Wednesday. The company has a fifty day moving average price of $75.24 and a 200-day moving average price of $69.20. The firm has a market cap of $284.30 billion, a price-to-earnings ratio of 17.42, a PEG ratio of 0.99 and a beta of 0.52. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.92 and a quick ratio of 0.92. HSBC has a 1 year low of $45.66 and a 1 year high of $83.05.

HSBC (NYSE:HSBC) last released its quarterly earnings results on Tuesday, October 28th. The financial services provider reported $1.80 earnings per share for the quarter, topping the consensus estimate of $1.65 by $0.15. The business had revenue of $17.79 billion for the quarter, compared to analysts’ expectations of $16.78 billion. HSBC had a net margin of 12.85% and a return on equity of 12.78%. As a group, equities research analysts predict that HSBC will post 6.66 EPS for the current fiscal year.

Institutional Trading of HSBC

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Fisher Asset Management LLC boosted its stake in HSBC by 2.1% in the 3rd quarter. Fisher Asset Management LLC now owns 17,398,460 shares of the financial services provider’s stock worth $1,234,943,000 after purchasing an additional 355,089 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of HSBC by 1.8% in the third quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider’s stock worth $750,659,000 after buying an additional 185,073 shares in the last quarter. Northern Trust Corp boosted its position in shares of HSBC by 4.7% in the third quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider’s stock valued at $216,144,000 after acquiring an additional 136,342 shares during the period. American Century Companies Inc. grew its stake in HSBC by 14.7% during the third quarter. American Century Companies Inc. now owns 1,311,820 shares of the financial services provider’s stock valued at $93,113,000 after acquiring an additional 168,438 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in HSBC by 160.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 502,200 shares of the financial services provider’s stock worth $30,529,000 after acquiring an additional 309,738 shares during the period. 1.48% of the stock is currently owned by institutional investors.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Reports say HSBC is exploring a sale of its Singapore insurance unit (potentially >$1bn). A divestment could unlock capital, simplify regional exposure and fund buybacks or M&A, which is being viewed positively by investors. HSBC exploring sale of Singapore insurance business — Bloomberg
• Positive Sentiment: HSBC is expanding in the UAE with a new asset-management arm to capture rising wealth inflows — a potential long-term fee-growth driver that supports regional revenue diversification. HSBC taps into UAE rising wealth inflows with new asset management arm
• Positive Sentiment: Former HSBC chairman Tucker is expected to stay on as an adviser — governance continuity that can reassure investors during strategic reviews. Former HSBC chairman Tucker to stay adviser
• Positive Sentiment: Positive analyst attention on HSBC-related life-insurance assets (Canara HSBC Life receiving favorable analyst commentary/coverage) may lift perceived value of HSBC’s insurance stakes. Motilal Oswal initiates coverage on Canara HSBC Life
• Neutral Sentiment: Morgan Stanley initiated coverage on HSBC with an “equal weight” rating — a neutral signal that brings more attention but no upgrade/downgrade-driven repricing.
• Neutral Sentiment: HSBC strategist Max Kettner said he’s “almost maximum bullish” on equities (macro outlook)—this is a market-view commentary rather than direct company news. We’re ‘almost maximum bullish’ on equities — HSBC’s Max Kettner
• Neutral Sentiment: Bloomberg reports HSBC is planning a risk-transfer linked to about EUR2bn of corporate loans — a capital / risk-management move that may be neutral overall but worth monitoring for credit exposure and capital ratios. HSBC planning risk transfer linked to EUR2 bil of corporate loans — Bloomberg
• Neutral Sentiment: HSBC research pieces (smart-glasses TAM, AI stock calls, regional surveys) underscore the bank’s global research footprint but have limited immediate impact on HSBC’s own shares. Smart glasses market will be worth $200 billion by 2040, HSBC says

HSBC Company Profile

HSBC Holdings plc (NYSE: HSBC) is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world’s largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.