Analysts have raised their price target for Standard Chartered to £14.04, citing higher net interest income forecasts, improved loan growth in Asia, greater confidence in credit quality, and potential for increased shareholder returns.
Analyst Commentary
- Upward revision of net interest income estimates driven by a favorable interest rate environment.
- Positive loan growth outlook, particularly in Asian markets, supporting earnings momentum.
- Expectation of improving return on equity as cost efficiency programs take effect.
- Increased confidence in credit quality and lower-than-feared impairment charges.
- Bullish analysts highlighting Standard Chartered’s strong capital position and potential for enhanced shareholder returns through buybacks or dividends.
What's in the News
- Standard Chartered was appointed as custodian for the first regulated tokenized money market fund in Dubai International Financial Centre, enhancing its digital asset custody presence and RWA tokenization leadership in the Middle East.
- In partnership with Ant International and Swift, Standard Chartered launched live production trials of ISO 20022-compatible bank-to-wallet payments, connecting global accounts to 1.7 billion digital wallets, with focus on Asian markets.
- The company commenced a new share repurchase program, authorizing up to 10% of issued capital; an agreement with Goldman Sachs International allows repurchase of up to 194 million shares ($1.3 billion) through January 2026, alongside ongoing buybacks that have retired 4.13% of shares for $1.5 billion.
- Standard Chartered issued earnings guidance for 2025 and 2026, expecting operating income CAGR of 5% to 7% (2023-2026), tracking toward the upper end; 2025 growth expected at the lower bound of this range.
- The board approved an interim dividend of $0.123 per share for FY2025, payable in September.
Valuation Changes
Summary of Valuation Changes for Standard Chartered
- The Consensus Analyst Price Target has risen slightly from £13.70 to £14.04.
- The Future P/E for Standard Chartered has risen slightly from 6.43x to 6.59x.
- The Consensus Revenue Growth forecasts for Standard Chartered remained effectively unchanged, at 3.4% per annum.
Disclaimer
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