rebootarcade| Hang Seng Bank (00011): Earnings per share forecast increased by 2 to 3%, target price of HK$109

News summary

Citibank raises Hang Seng Bank's earnings forecast for next three yearsrebootarcade, and increased the target price to reflect market confidence and cost optimization.

Newsletter text

Citigroup adjusts earnings forecast for Hang Seng Bank

[Hang Seng Bank (00011)'s earnings per share forecast for the fiscal year 2024 to 2026 has been increased by Citibank, with an increase of 2% to 3%.]

This adjustment is based on improved market sentiment, which has led to an increase in fee income and a reduction in tax burden. Citi conducted a detailed analysis of this. The reduction in macro uncertainty also prompted Citibank to reduce its estimate of the cost of equity from 10rebootarcade.4% was lowered to 9.8%.

The analysis results led to a revision of the target price from HK$96 to HK$109, while maintaining the "neutral" rating on Hang Seng Bank.