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Fair enough.
SfH, when I wrote the original post the reply was that 420p was an unreasonable target. Internally HSBC senior management are targeting a swift return to 700p, I think that is realistic for 18 months.
agree, 500 , then 550p....upwards.....also no excuse not to reinstate Quarterly dividend
Bank of America raised its target price for HSBC from 520.0p to 550.0p just last week. 600p might be a bit optimistic at this stage.
So 500p by Feb looks like it may happen, only 19p to go.
I still see 600p by August as a possibility if the dividends are restored.
Thanks, ~Tophat.
Optimist123 - Results are late Feb, the 22nd I think & that's probably when any dividend announcement will be. I seem to recall them saying that early 2022 will be when they announce anything so it may even be before the 22nd.
I'm personally as optimistic about banking shares now as I have been for many a year & I like HSBC for a variety of reasons so I'm happy to hold here & collect the ever increasing dividends (fingers crossed)
SFH300
If the analyst doesn't give a specific time range then it is usual to assume it is between 12 to 18 months.
In addition to this, is there any news on if they’ll be a return to quarterly dividends?
I wish these analysts would give a timescale for their target prices. 550p by June would be great, 550p by 2030 less so.
As this will be of interest to holders I make no apologies for the below article, cut & pasted from another site.
Analysts at Bank of America raised their target price for shares of HSBC, telling clients that the prospects for share buybacks by the lender were brightening.
According to Dow Jones Newswires's Philip Waller, citing its estimated increases in HSBC's cash flows, BoA said the Asia-focused lender looked set to return more cash to shareholders than expected - despite risks.
Among the potential risks cited were changes in interest rates and the impact on business in Hong Kong of legislation out of Beijing. Nevertheless, HSBC was also set to lower its own risks.
"First, since its announcement of a buyback with 3Q21, it has outperformed close peer StanChart by 10 [percentage] points," BoA analysts reportedly said.
"We think this emphasizes the value of the $9 billion upcoming capital return. Second, a normalization of treasury could lock in forward curves. We reiterate our buy rating."
BoA raised its target price for HSBC's shares from 520.0p to 550.0p.
HSBC have stated they have no direct exposure. Are you referring to some indirect exposure marine?
I hear HSBC are on the hook for billions but that has long been baked into the price. China cannot unlock from Covid until the threat of riots is passed. So they will want a quick settlement I expect. They have to soften the impact or people will go onto the streets, Covid Lockdown or not.
Are we likely to see any fall out from the evergrande situation here? Gla regards jack
LTI - Get a life.
Perhaps your New Years resolution for 2022 should be learning how to post without insulting others & please don't take everything so personally.
Happy New Year by the way.
g59
''Unlike a company like LGEN who stuck two fingers up & continued to pay shareholders.''
You clearly do not know the difference in messaging that the PRA gave to the banks compared with insurers.
''Please confirm to the PRA by 20:00 today whether or not your group is prepared to agree to this request.The PRA stands ready to consider use of our supervisory powers should your group not agree to take such action.''
https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/letter/2020/letter-to-hsbc.pdf
To the insurers the PRA wrote
''When UK insurers’ boards are considering any distributions to shareholders or making decisions on variable remuneration, we expect them to pay close attention to the need to protect policyholders and maintain safety and soundness, and in so doing to ensure that their firm can play its full part in supporting the real economy throughout the economic disruption arising from COVID-19.”
Gary59
The comparison between HSBC and LGEN is totally unjustified.
The letter from the PRA to the banks “Requesting” that they cancel shareholder distributions contained an explicit threat to use its statutory powers to block distributions, if the banks didn’t comply voluntarily.
The choice the banks had was between not paying dividends and keeping the regulator happy and not paying dividends and upsetting the regulator.
Upsetting the PRA would have been silly as they could have taken the view that then board and management were less prudent than the PRA had thought and so increased the banks Pillar 2A capital buffer. This is the buffer used by the PRA to take into account the individual differences between banks.
Had this happened the net result would have been that there was less available to distribute to shareholders once distributions resumed.
Companies not countries
Lots of western countries get stung in India, just ask vodafone. They managed to get retrospective tax from them years after making an agreement on it. BILLIONS! it has a poor corporate reputation. Hsbc, tread carefully. They can view western companies as pay days
HSBA has announced it is to buy India Mutual Funds Business for $425 Million.
I think this is an excellent move as India will be a big growth sector over the next decade.
Your views?
Thank you Gary59.
I didn't like the dividend freeze, who would. But I think it was the right decision after the knowledge gained from the last financial crisis when the gouvernment had to step in and bail out some banks, I don't think with everything else that they would have been keen to do that again. It was an easy way to limit risk while causing minimum long term harm.
I agree that the dividends will likly rise over the next year, as I can see no reason why they wouldn't as things stand today. This will in turn intice more investors back to the bank.
For me, if I held only one bank stock, at the moment HSBA would be the one I would choose.
Some good points there Paul & in addition the dividend will rise in my opinion at HSBA in 2022 & beyond.
The BOD still haven't been forgiven by our far east investors for not paying dividends when Boris told them not too. Unlike a company like LGEN who stuck two fingers up & continued to pay shareholders.
They will want to put that right especially in the Far East as that is where the power is in this company.
I'm not sure that I would call a return to the recent highs an overreaction, I think a lot of banks have been under valued for a little while.
I don't think its going to jump straight back, but maybe a gentle climb over the next few weeks.
Like everyone I like to see the SP rise, but it dosen't really make any difference, its only an unrealised profit until you sell.
I do think we will see some good growth in HSBA over the next decade, and perhaps some nice dividends.
The question is will they quickly overreact in the opposite direction, or will it be weeks or months before they return to the levels even of last week?
Holding up well today in markets that are clearly over-reacting to Omicron.