Morgan Stanley Initiates Coverage on HSBC (NYSE:HSBC)

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

A number of other analysts have also recently commented on HSBC. Erste Group Bank raised HSBC from a “hold” rating to a “buy” rating in a research note on Thursday, November 20th. Weiss Ratings restated a “hold (c+)” rating on shares of HSBC in a report on Monday, December 29th. Jefferies Financial Group reissued a “hold” rating on shares of HSBC in a research report on Friday, October 10th. Zacks Research raised shares of HSBC from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 3rd. Finally, Citigroup reissued a “buy” rating on shares of HSBC in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, HSBC currently has an average rating of “Moderate Buy” and an average price target of $63.00.

HSBC Trading Up 0.3%

HSBC traded up $0.25 during mid-day trading on Wednesday, reaching $81.77. The stock had a trading volume of 412,015 shares, compared to its average volume of 1,758,238. The stock has a market capitalization of $280.88 billion, a P/E ratio of 17.21, a P/E/G ratio of 0.99 and a beta of 0.52. HSBC has a 52 week low of $45.66 and a 52 week high of $83.03. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.92 and a current ratio of 0.92. The firm’s fifty day simple moving average is $74.80 and its two-hundred day simple moving average is $69.01.

HSBC (NYSE:HSBC) last issued its earnings results on Tuesday, October 28th. The financial services provider reported $1.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.15. HSBC had a net margin of 12.85% and a return on equity of 12.78%. The company had revenue of $17.79 billion for the quarter, compared to analyst estimates of $16.78 billion. On average, equities analysts predict that HSBC will post 6.66 EPS for the current year.

Hedge Funds Weigh In On HSBC

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Acadian Asset Management LLC grew its holdings in shares of HSBC by 254.2% in the first quarter. Acadian Asset Management LLC now owns 23,718 shares of the financial services provider’s stock worth $1,362,000 after purchasing an additional 17,021 shares during the last quarter. Gradient Investments LLC grew its position in shares of HSBC by 19.3% in the 2nd quarter. Gradient Investments LLC now owns 12,324 shares of the financial services provider’s stock worth $749,000 after buying an additional 1,998 shares during the period. Aaron Wealth Advisors LLC grew its holdings in HSBC by 3.5% in the second quarter. Aaron Wealth Advisors LLC now owns 25,691 shares of the financial services provider’s stock worth $1,562,000 after purchasing an additional 869 shares during the period. Bruce G. Allen Investments LLC boosted its position in shares of HSBC by 20.7% in the 2nd quarter. Bruce G. Allen Investments LLC now owns 1,845 shares of the financial services provider’s stock worth $112,000 after purchasing an additional 317 shares in the last quarter. Finally, Sivia Capital Partners LLC increased its position in HSBC by 19.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider’s stock valued at $723,000 after buying an additional 1,899 shares in the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC has launched an asset management business in the UAE to capture rising wealth inflows across MENAT, registering 10 onshore funds — this expands the bank’s fee-income opportunity in a fast-growing wealth market. HSBC taps into UAE rising wealth inflows with new asset management arm
• Positive Sentiment: Coverage and analyst interest in HSBC’s insurance JV (Canara HSBC Life) picked up — brokers are positive on growth drivers and Motilal Oswal initiated coverage with a Buy target — this supports potential upside to HSBC’s insurance-related earnings and franchise value. Canara HSBC Life gets thumbs-up after steady post-IPO run; analysts see growth runway Motilal Oswal initiates coverage on Canara HSBC Life
• Positive Sentiment: Former chairman Mark Tucker is reported to stay on as an adviser, signalling continuity at the top and supporting investor confidence in strategic execution. Former HSBC chairman Tucker to stay on as adviser, Bloomberg reports
• Positive Sentiment: HSBC Innovation Banking reports improvement in healthcare venture markets, suggesting a pickup in advisory and capital-markets activity that could boost fee-based revenue. Healthcare Venture Markets Regain Momentum as Capital Returns, according to HSBC Innovation Banking
• Neutral Sentiment: Bloomberg reports HSBC is planning a risk-transfer linked to ~EUR2bn of corporate loans — this could be risk-reducing (capital relief) but also signals the bank is actively managing exposures; monitor details and accounting treatment. HSBC planning risk transfer linked to EUR2 bil of corporate loans — Bloomberg
• Neutral Sentiment: HSBC granted conditional share awards under its global purchase plan — standard employee incentive activity that supports retention but implies modest future dilution. HSBC Grants New Conditional Share Awards to Employees Under Global Purchase Plan
• Neutral Sentiment: HSBC’s equity research activity (e.g., upgrades/downgrades such as EssilorLuxottica) shows an active institutional franchise but is unlikely to move HSBC’s stock materially; it may modestly boost trading/market-making revenue. HSBC upgrades EssilorLuxottica on $200 bln AI smart glasses outlook; shares up

About HSBC

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.