Broker snap: HSBC still a buy, says Nomura

9th May 2012 10:44

Nomura has reiterated its buy recommendation and 650p target price for global banking giant HSBC, saying that consensus forecasts may increase slightly following the firm's first-quarter results yesterday."The HSBC Q1 figures are unlikely to change perceptions of the group materially, in our view. On the plus side, full-year consensus expectations are likely to nudge upwards and there are real signs of cost control, there was good growth in profits and revenues in the Asian businesses," the broker said in a research report this morning.The main negative point at HSBC, the broker points out, is the moderate overall business growth due to the developed markets. "However, although revenue headwinds persist, they are at least abating; revenue has now turned positive after several years of decline, while many banks are seeing revenue contraction from repositioning their balance sheets. We remain positive towards the shares."Despite the positive comments, the broker still says that its preference is for Standard Chartered given its recent underperformance.BC