The Zhitong Finance App learned that Morgan Stanley released a research report saying that the recent decline in the stock price of HSBC Holdings (00005) has made short-term valuations more attractive. The bank believes that recent adjustments have been excessive, and the stock price is expected to rise relative to the market index in the next 15 days; the target price is HK$173, and the rating is “increased.”

The bank pointed out that HSBC Holdings' third quarter results showed that wealth management capital flows remained steady, and the Group is expected to have more capital space in 2027. Increased competition for deposits will put pressure on net interest spreads, but relatively many of HSBC Holdings' peers are in a better position. The current price is equivalent to the predicted dividend yield of 5.4% in 2027, and the price-earnings ratio is 9.4 times. The bank believes that it is attractive compared to the valuations of Hong Kong, China and ASEAN financial stocks.

The bank estimates that the probability of the above scenario occurring is about 70% to 80% (i.e. “very likely”).

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