Morgan Stanley: Reiterates "Overweight" rating on STANCHART (02888) and raises target price to 128.3 Hong Kong dollars.

Morgan Stanley released a research report stating that it has reiterated its "overweight" rating on STANCHART (02888), with a target price raised from 108.5 Hong Kong dollars to 128.3 Hong Kong dollars. The bank is also revising its stock repurchase expectations for Standard Chartered for the 2025 fiscal year to $3 billion, and for the 2026 fiscal year to $2 billion. Morgan Stanley stated that based on Standard Chartered's performance in the fourth quarter of 2024, it has raised its profit forecasts for the 2025 and 2026 fiscal years by 6.7% and 2.7% respectively. The bank noted that the higher net interest income estimates for these two years reflect strong performance in the previous quarter, while non-interest income estimates have been slightly revised downwards. The bank's higher cost expectations largely reflect the reclassification of deposit insurance.