MARKET TALK: WestLB Upgrade HSBC To Neutral From Reduce

13th Jul 2010 12:03

1103 GMT [Dow Jones] WestLB upgrades HSBC (HSBA.LN) to neutral from reduce, saying its concerns that the withdrawal of economic stimulus in the US would be too rapid, have now diminished somewhat. WestLB says the economic recovery in the US remains fragile and although it forecasts loan loss provisions will fall in 1H'10 at HSBC, it expects them to rise again in 2H, relative to the previous half. WestLB raises its 2010 EPS estimate to $0.53 from $0.49 and '11 EPS estimate to $0.73 from $0.69, mostly to reflect lower loan provisions, especially within the US consumer finance subsidiary. 600p target. Shares +1.6% at 643p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 13, 2010 07:03 ET (11:03 GMT)