Goldman Sachs: Raises STANCHART (02888) target price to HK$290, maintains "Buy" rating.

Goldman Sachs issued a research report stating that it has raised the 12-month target price for STANCHART (02888) to HK$290 and maintained a "Buy" rating. STANCHART's third-quarter results were strong, with pre-tax profit 13% above market expectations, mainly benefiting from record performance in the wealth solutions business, strong global markets business, and a significant decline in credit impairments. Management raised its guidance for FY2026 net interest income growth to approximately 4% year-on-year, implying net interest income of approximately US$11.63 billion; it also raised its FY2026 return on tangible equity (ROTE) expectation to approximately 14%, mainly supported by continued balance sheet growth and positive operating leverage. Goldman Sachs noted that its earnings per share forecasts for STANCHART for FY2026 to FY2028 remain broadly unchanged, as revenue growth is offset by increased growth investment and taxes. However, its earnings forecasts remain 3% to 4% above market expectations.