Citibank: Raising the target price of HSBC Holdings (00005) to HK$172, reaffirming the “neutral” rating

The Zhitong Finance App learned that Citi released a research report stating that it raised the target price of HSBC Holdings (00005) from HK$165.5 to HK$172, reaffirming the “neutral” rating. The bank updated the assumptions of the Federal Reserve and the Bank of England. Currently, terminal interest rates are expected to be 4.75% and 4.25%, respectively, leading to an increase in HSBC Holdings' net interest income forecast.

The bank accordingly raised HSBC Holdings' 2026-2028 earnings forecast per share by 0% to 3%, which is 0% to 5% higher than market expectations. The bank expects a stock price return of 8.0%, plus an expected dividend yield of 4.8%, and a total return of 12.8%.