Morgan Stanley raises target price of STANCHART (02888) to 221 Hong Kong dollars, increases earnings forecast and bullish outlook, reiterates "hold" rating.

Morgan Stanley released a research report stating that they have updated their risk-return assessment for STANCHART (02888), raising the target price from 195 HKD to 221 HKD, and maintaining a "buy" rating. The bank also adjusted the weights of the bull, base, and bear scenarios from 10:80:10 to 20:75:5, mainly reflecting the potential growth in its wealth management business and medium-term targets. Morgan Stanley raised its profit forecasts for Standard Chartered for the years 2026 to 2028 by 1.9%, 0.7%, and 2.5% respectively. Morgan Stanley explained that the increase in the 2026 revenue forecast reflects better-than-expected growth in the wealth business; they also slightly lowered cost forecasts for all three years. However, due to geopolitical uncertainties, the bank also simultaneously raised the credit cost assumptions for all three years.