Broker snap: Credit Suisse dismissive of StanChart report? Or not?

25th Sep 2012 13:35

Analysts at Credit Suisse have issued what at first glance seems like a rather dismissive research note on this morning´s FT article according to which Singapore investment fund Temasek has sounded out potential buyers for its 6bn pound stake in Standard Chartered. In this regard, they comment that: "This is not the first time that we have seen this type of story, although whether or not a transaction happens we think it may create a debate." On the other hand, they make three "observations" which may be of interest and, for the most part, would seem to point in precisely the opposite direction. These are: [Credit Suisse believes] Temasek has been trying to shift away from financials towards commodities and other sectors, at the AGM this year they did not support the elections of all the executive directors and given the prominence of the stake for Temasek this could also be interpreted as a negative indicator of their expectations for the group.Finally, these analysts conclude by saying that: "Having recovered the majority of the losses since the NYDFS episode in August, the stock is now trading back at 1.5x 2012E PTNAV for a 15% RoTE. At this level, we see the risks as more balanced and remain Neutral with a price target of 1460p."AB