STAN: Future Returns Will Depend On Executing Digital Custody And Tokenization Strategy

The analyst price target for Standard Chartered has inched higher to around £16.18 from approximately £16.25, as analysts broadly factor in slightly improved long term earnings prospects and valuation multiples following a series of modest target hikes across the Street.

Analyst Commentary

Recent research updates present a mixed but overall constructive outlook on Standard Chartered, with incremental target increases offset by one notable reduction. The revisions reflect differing views on the bank's ability to execute on growth ambitions while managing risk and capital deployment.

Bullish Takeaways

• Bullish analysts cite improving earnings visibility and capital generation as justification for lifting price targets, pointing to a more supportive backdrop for returns.
• The upward moves in targets, including from JPMorgan, highlight confidence that management can deliver on medium term growth plans and maintain disciplined cost control.
• Some upward revisions suggest that credit quality and risk costs are seen as manageable, supporting a higher valuation multiple versus prior assumptions.
• Incremental target hikes indicate that recent operational performance is viewed as broadly on track, underpinning expectations for steady book value growth.

Bearish Takeaways

• Bearish analysts trimming targets emphasize execution risks around achieving higher returns on equity, particularly if revenue momentum slows or cost pressures re emerge.
• The reduction in one target underscores concerns that prior expectations may have been too optimistic relative to the bank's current profitability profile.
• Cautious views focus on the possibility of valuation compression if macro conditions deteriorate, especially in key emerging markets where Standard Chartered has significant exposure.
• Equal Weight and Neutral stances signal that, while downside may be limited, there is uncertainty about the catalyst needed to drive a sustained re rating from current levels.

What's in the News

• JPMorgan lifted its price target on Standard Chartered shares to 1,690 GBp from 1,670 GBp and reiterated an Overweight rating, indicating continued confidence in the bank's earnings and capital position (Periodicals).
• Standard Chartered completed a $135 million share buyback tranche, repurchasing 6,086,001 shares, or about 0.26 percent of its share capital, under the program announced on August 4, 2025 (Key Developments).
• The bank is serving as custodian for the QCD Money Market Fund in the Dubai International Financial Centre, the region's first regulated tokenized money market fund, supporting its strategic expansion into regulated digital asset custody and RWA tokenization (Key Developments).

Valuation Changes

• The fair value estimate has edged down slightly to around £16.18 from approximately £16.25 per share, reflecting a marginally more conservative central valuation.
• The discount rate has decreased very slightly to about 8.44 percent from roughly 8.44 percent, implying a nearly unchanged risk assessment in the discounted cash flow framework.
• The revenue growth assumption is essentially unchanged at around 4.6 percent, indicating stable expectations for top line expansion.
• The net profit margin assumption remains effectively flat at about 25.1 percent, suggesting steady long term profitability expectations.
• The future P/E multiple has risen modestly to roughly 9.6x from about 9.5x, pointing to a slightly higher valuation tolerance for forward earnings.