Broker snap: No excuse to own HSBC shares, says Evolution

11th Nov 2011 09:44

In a stark research note issued this morning, Evolution Securities has reiterated its sell recommendation for banking giant HSBC, saying simply, "HSBC isn't working!"The broker acknowledged that "come rain or shine", HSBC will probably remain a much-loved stock among the London "sell-side": "Never mind the so-called safe haven arguments. There is absolutely no excuse for owning the shares at all," said analyst Ian Gordon.While chief executive officer told analysts in a conference call that he hopes to hit the 'bottom end' of his 2013 targets - a 12% return on equity and a 52% cost efficiency ratio - Evolution said that is doesn't expected either to be achieved."It enjoys a premium rating, yet it's outlook for return on equity is not materially superior to a UK domestic bank," Gordon said.A 600p target price is kept.BC