HSBC shares (LON: HSBA) have dual primary listings, on both the Hong Kong Stock Exchange and London Stock Exchange. The stock is a constituent of the Hang Seng Index and the FTSE 100 Index. It also holds secondary listings on the New York Stock Exchange and the Bermuda Stock Exchange.
HSBC is a British multinational banking and financial services organisation. The company is one of the largest Europe-based banks with a significant global footprint. Headquartered in London, England, HSBC has established its presence across various countries and territories, serving millions of customers.
YOUR CAPITAL IS AT RISK
HSBC EPS and Revenue Breakdown 2020-2023
| HSBC | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $0.19 | $50.4 billion |
| 2021 | $0.62 | $49.6 billion |
| 2022 | $0.74 | $51.7 billion |
| 2023 | $1.14 | $66.1 billion |
HSBC was originally known as The Hongkong and Shanghai Banking Corporation. The company can trace its roots back to 1865, when it was established in British-ruled Hong Kong to finance trade between China and Europe. Over the years, HSBC has grown to become one of the largest banking and financial services organizations in the world.
The bank was founded by Thomas Sutherland to capitalize on the growing trade between China and Europe. The establishment of branches in Shanghai and Hong Kong solidified its presence in the region and laid the foundation for its future expansion.
The bank’s growth has been characterised by various strategic acquisitions, which have resulted in the company expanding its global footprint, diversifying its services, and establishing a significant presence in various international markets, including Asia, Europe, and the Americas.
HSBC is now known for its international network, providing a wide range of financial services, including commercial banking, investment banking, and wealth management, serving millions of customers worldwide.
Banking Sector Comparison
The company offers a wide range of financial products and services, including asset management, banking, credit cards, equities trading, insurance, investment banking, mortgage loans, private equity, wealth management, and more.
HSBC’s subsidiary holdings include prominent entities such as Hang Seng Bank, HSBC Bank USA, HSBC Bank Canada, and HSBC Bank India, among others, cementing its influence in various key markets.
HSBC Share Dividend & Live Price
HSBC shares have been somewhat range-bound in recent times despite recovering well from their pandemic lows. However, the stock is still someway short of the highs it achieved in 2001.
Nevertheless, compared to some other banks, HSBC shares have fared somewhat well, despite a lack of real long-term growth.
HSBC Share Price Forecast
In late 2023, RBC Capital downgraded HSBC to Sector Perform from Outperform, lowering the stock price target to 775p per share, down from 825p. The firm said that with HSBC shares having outperformed its UK banking peers by 31% year-to-date (at the time), they believed it was a good time to take profits. RBC also stated HSBC’s earnings momentum seemed to have turned, while its improved capital distribution profile was reflected in consensus. More recently, RBC cut its price target for HSBC further, lowering it to 725p, down from 750p.
HSBC price target lowered to 610 GBp from 620 GBp at UBS 02/27 HSBC UBS lowered the firm’s price target on HSBC to 610 GBp from 620 GBp and keeps a Neutral rating on the shares.
Elsewhere, other firms have lowered their HSBC price targets recently. Berenberg cut its target for the bank to 800p from 820p per share, keeping a Buy rating on the stock, while JPMorgan lowered its HSBC target to 600p from 660p, maintaining a Neutral rating.
Overall, nine out of thirteen analysts currently have a Buy rating on HSBC shares. Four currently have a Neutral rating on the stock. A HSBC share price predictions is a challenge at best, a minefield at worst, yet of the analysts to try the average price target, according to TipRanks, is 767p, representing a potential 16% upside from current levels (July 2024).
Stock Suitability
While it can be tempting to jump into any stock that shows signs of potential profit over the short, medium and long-term, its important to consider whether the stock you are assessing fits your criteria and characteristics.
HSBC shares may be suitable for investors with a moderate risk tolerance. The stock’s performance is influenced by various factors, including global economic conditions and geopolitical events. Investors comfortable with exposure to these market dynamics may consider HSBC shares.
However, if you do invest in HSBC, patience is another characteristic that is more than likely required, given the stock has been more rangebound in recent years and has not been able to top its highs achieved in 2006, and before that, 2001.
As a result of the lack of upside momentum, if you do see HSBC as a suitable investment, then a long-term view is required. HSBC shares will need to align with investors seeking exposure to the financial sector, particularly in the context of global banking and financial services.
Additionally, investors with a focus on dividend income might find this one attractive, as the HSBC dividend has historically been quite significant, and reliable.
