Goldman Sachs has added HSBC (LON: HSBA) to its European Conviction List as part of the firm’s monthly update, reaffirming its bullish stance on the bank and citing the strength of its deposit franchise as a key driver of future growth.
According to the note, Goldman Sachs believes HSBC’s “scaled deposit franchise should drive net interest income and structural growth.”
The addition to the conviction list follows Goldman analyst Chris Hallam’s reinstatement of coverage in late March with a buy rating and a 1,675 pence price target.
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At the time of reinstatement, Hallam told investors that HSBC presents a “near-unique combination” of a scaled deposit franchise, consistent and structural growth and a liquidity focused balance sheet relative to European, Asian and global peers.
Goldman is modeling revenue growth of 4% to 6% per year in 2026 and 2027, comprising net interest income growth of 3% to 5% and fee growth of 6% to 8%.
HSBC shares are up 8.5% year-to-date and gained 7.8% in the past week, though the stock has pulled back 4.2% over the past month. Shares currently trade at 1,286.6 pence.
Analyst sentiment remains cautiously positive. Of 19 analysts covering the stock, nine carry buy ratings, eight are at hold and two recommend selling, according to TradingView data.
The consensus price target of 1,377.4 pence implies roughly 7% upside from current levels, well below Goldman’s more bullish 1,675 pence target.
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