Broker snap: UBS upgrades Standard but prefers HSBC

2nd Jul 2009 13:05

Though it continues to favour fellow Asia-focused bank HSBC, UBS has moved from a negative to a neutral stance on Standard Chartered, and sees the shares becoming becalmed in the near future.UBS has upped its price target from £10 to £11.40, some 50p below its current share price. The Swiss bank is projecting Standard to make pre-tax profit of $2.5bn at the interim stage this year, nearly four times what it was making four years ago, as it benefits from having maintained its capital and funding discipline prior to the credit crunch.The Swiss bank believes the interim results will represent a near term earnings peak for Standard. It prefers HSBC, which is likely to benefit from the same trends as Standard Chartered but which is valued well below its historical average.