Bank of America Securities: HSBC Holdings (00005) has multiple catalysts, reiterates as top pick stock.

Bank of America Securities released a research report stating that HSBC HOLDINGS (0005) is one of its top picks this year, as it expects significant growth in the Hong Kong deposit business and Asian wealth management business. As HSBC already has a substantial competitive advantage in these areas, and management has committed to increasing investment in these areas, the target price is now set at 149.6 Hong Kong dollars with a "buy" rating. HSBC recently completed the privatization of HANG SENG BANK, with estimated pre-tax total synergies of approximately 800 to 900 million US dollars, including cost and revenue synergies. Bank of America expects that 20% of Hang Seng's cost base has synergies, as Hang Seng's costs were already very efficient and will continue to operate under its own brand and maintain its own branch network. Furthermore, Bank of America sees potential for revenue synergies, especially in fee income from wealth management, wholesale, and trading banking businesses. Hang Seng's current income structure leans more towards net interest income; based on its strong customer relationships, Bank of America believes there are significant opportunities for cross-selling, and as local business grows, its importance will further increase.