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Broker Tips: HSBC, Lloyds Banking Group, Rightmove

  • Berenberg upgrades HSBC to ‘Buy’
  • Shore Capital reiterates ‘Buy’ for Lloyds Banking Group
  • HSBC upgrades Rightmove to ‘Buy’

Berenberg upgrades HSBC to ‘Buy’

Berenberg has upgraded HSBC [LON:HSBA] to ‘Buy’ (Hold) with a target price of 780p. The FTSE 100 banking group posted a robust earnings report yesterday (Tuesday 2nd May) that demonstrated a quarterly profit that had tripled quarter over quarter, exceeding analysts expectations. The rise in income was driven by the elevated rates environment which led the bank to issue a quarterly dividend for the first time since 2019. This comes off the back of unease spreading across the banking sector in light of First Republic’s woes over in the US and could provide a welcome boost for investors in the sector.

At the time of writing, shares in HSBC were trading at 599.40p, up 13% for the year to date and +16% over the last 12 months.

Shore Capital reiterates ‘Buy’ for Lloyds Banking Group

Continuing with the Banking sector, Shore Capital has reiterated its ‘Buy’ recommendation for Lloyds Banking Group [LON:LLOY] following its Q1 update this morning (Wednesday).  The numbers highlighted a close on 50% uptick in post-tax profits and a 19.1% return on tangible equity, significantly above the 13% target. Net interest income rose by an impressive 20%, whilst impairment changes were just £0.2bn, reflecting the quality of the loan book.

Shares in Lloyds Banking Group are trading at 45.78p, -2.86% for the year to date and -0.87% over the last 12 months.

HSBC upgrades Rightmove to ‘Buy’

HSBC has upgraded Rightmove [LON:RMV] to ‘Buy’ (Hold) and raised its target price to 645p (530p). The bank noted in its update on Tuesday that data from the UK housing market is showing early signs of a recovery and that “Some of these early indicators of demand, including new buyer enquiries, new instructions and sales agreed, are edging towards more-normal 2019 levels.” The note cautioned that it is too early to tell if the demand is sustainable but that …”activity levels are in a better shape than at the end of 2022, while HSBC also suggested Rightmove’s ability to continually evolve its products and stay ahead is likely to serve it well.

Shares were trading at 578.60p, up 10% in 2023 to date and -5.8% over the last 12 months.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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