Broker snap: HSBC cut by French bank

19th Jan 2010 12:29

HSBC is weaker Tuesday after French broker Exane BNP Paribas cuts its stance on the bank to 'underperform' from 'neutral' with 700p price target.Analyst Ian Gordon says the decision reflects the emergence of 'genuine value opportunities elsewhere, rather than any material deterioration in the pace of HSBC's own recovery'. He notes that the company's outperformance during the first half of the financial crisis was driven by 'signature strengths' of capital and liquidity.'The latter has now become a millstone during what we see as an extended sub-par recovery in which an overwhelming desire to avoid policy mistakes will hold interest rates low,' he said.