Update shared on 20 Nov 2025
Fair value Increased 1.02%HSBC Holdings' average analyst price target has increased modestly, with recent adjustments reflecting improved forecasts for earnings growth and profitability as analysts react positively to the bank’s solid quarterly performance and outlook.
Analyst Commentary
Recent street research highlights a spectrum of opinion on HSBC Holdings, with both optimism and caution influencing analyst recommendations and price targets following the bank’s quarterly results and strategic developments.
Bullish Takeaways
- Bullish analysts were encouraged by HSBC’s "good" third quarter performance and believe the bank is on track to control cost growth, aiming for a 3% target by 2025.
- Projections for the bank’s profitability remain positive, with some expecting return on equity to reach at least 15% in 2025, supporting upward momentum in valuation.
- Several price target increases reflect confidence in HSBC’s earnings power and continued delivery against strategic goals, with recent upward revisions above 1,100 GBp.
- Ongoing buy recommendations highlight HSBC’s improved execution and the market’s favorable response to management’s outlook for sustained growth and capital returns.
Bearish Takeaways
- Bearish analysts note caution surrounding certain strategic decisions, specifically the approach to inorganic capital deployment such as the HSB private transaction.
- There remains skepticism about the efficiency of recent capital allocation, with reservations over whether alternative strategies could yield better shareholder value.
- Cautious commentary has resulted in some downgrades to Hold or Neutral, reflecting uncertainty around long-term execution despite near-term performance gains.
- Some have raised price targets but maintained neutral stances, indicating that while growth prospects exist, the shares may already reflect a fair valuation at current levels.
What's in the News
- HSBC's board is facing challenges agreeing on candidates to become the next chair. This has sparked debate about qualifications and succession plans (Financial Times).
- Former U.K. Chancellor George Osborne is among three remaining contenders to chair HSBC, which is bringing increased attention to board-level changes (Sky News).
- JPMorgan raised its price target on HSBC shares to 950 GBp and is maintaining a Neutral rating on the stock.
- A cyberattack on Evertec's Sinqia targeted Brazilian institutions, including HSBC's local operations. HSBC confirmed no customer funds or accounts were compromised and that protective measures have been taken (Bloomberg).
Valuation Changes
- Fair Value Estimate has risen slightly from £10.66 to £10.77 per share, reflecting modest upward revisions to earnings projections.
- Discount Rate increased marginally from 10.86% to 10.90%, indicating a very slight adjustment in risk or required return assumptions.
- Revenue Growth forecasts improved, with the expected rate moving from 8.09% to 8.31% for future periods.
- Net Profit Margin is projected to expand, rising from 37.07% to 37.73%, suggesting expectations for stronger profitability.
- Future P/E Ratio has edged down from 10.54x to 10.47x, which implies a marginally less expensive valuation on future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.