Citi: Raises STANCHART (02888) target price to HK$230.8, upgrades earnings forecast and bullish on near-term momentum

Citi issued a research report stating that after STANCHART (02888) announced its third-quarter 2026 results, the bank raised its 2026 earnings per share forecast by 10% and its 2027-2028 earnings per share forecasts by 3%; it raised the target price from HK$223.7 to HK$230.8, reiterated its "Neutral/High Risk" rating, but based on better near-term earnings momentum, it now favors Standard Chartered over HSBC HOLDINGS (00005), which is also rated "Neutral." The bank noted that revenue forecasts were raised by only about 1%, partly offset by an approximately 1% increase in cost forecasts. The bank's revised pre-tax profit forecasts are about 2% to 4% above market expectations, and it expects adjusted return on tangible equity of 14.6% in 2026 (versus its updated target of about 14%) and 16.3% in 2028 (above its target of over 15%).