Broker snap: HSBC in pole position

18th Aug 2009 12:34

Global banking giant HSBC is in pole position among banks to benefit from the global economic recovery when it picks up steam, Goldman Sachs believes.Goldman Sachs said that with the chapter now closed on its ill-fated acquisition of US sub-prime lender Household, its HSBC Finance division should stop being a major drag on earnings in 2010, earlier than previously expected. According to Goldman Sachs (GS), HSBC is 'highly geared to a global recovery due to the absence of significant drag from US consumer credit losses.'GS has upgraded the stock from 'neutral' to 'buy' and lifted its price target from 580p to 800p.