JP Morgan: Raises target price for STANCHART (02888) to 190 Hong Kong dollars, the top choice for banking stocks in Greater China region.

JPMorgan Chase released a research report stating that STANCHART (02888) is the bank's top choice for bank stocks in the Greater China region. Based on Standard Chartered's strong performance in the third quarter and the investor meeting with Standard Chartered's Chief Financial Officer Diego De Giorgi, JPMorgan Chase raised its earnings per share forecast for Standard Chartered for the years 2021 to 2027 by 3% to 6%, driven by stronger revenue and reduced provisions. The bank maintained a "neutral" rating for Standard Chartered, raised the target price from the original HK$168 to HK$190, and predicted a 13% increase in earnings per share in 2028 and an adjusted return on tangible equity of 14%. The report also pointed out that, according to JPMorgan Chase's latest forecast, Standard Chartered's total dividend and buyback yield next year will be 7.5%, the highest among banks in the Greater China region. Additionally, there is room for an upward revision in non-interest income forecasts for Standard Chartered, driven by wealth and market business, leading to a forecasted tangible equity return of 14% next year. The bank also expects Standard Chartered to obtain a stablecoin issuance license in Hong Kong through its Anchorpoint branch, which will be positive for market sentiment.