Deutsche Bank cuts HSBC to 'hold' after share price gains

(Sharecast News) - Deutsche Bank downgraded HSBC on Monday to 'hold' from 'buy' but lifted the price target to 910p from 830p after recent share price gains. HSBC doesn't have to do a lot to maintain a healthy mid-teens return on tangible equity after many years of restructuring, Deutsche said.

"We expect any incremental restructuring will be relatively small and aimed at maintaining ROTE levels against a falling rate environment across a global cost base.

"If the scale of restructuring is contained, then we believe our capital return expectations could remain unchanged- one of the key attractions of the stock."

However, DB said that after a "substantial" increase in share price, the value "is no longer there".

At 1055 GMT, the shares were down 2.2% at 826.80p in a sharply lower UK market.