KBW upgrades HSBC to 'outperform'

(Sharecast News) - HSBC shares rallied on Wednesday after KBW lifted its rating to 'outperform' from 'market perform', citing the strength of the bank's Hong Kong business. KBW - which hiked the target price to 1,240p from 990p - said it expects the strong recent performance of HK wealth management and capital markets to continue.

It said HK CRE is still facing challenges but no material writedowns are expected.

At 1255 GMT, HSBC shares were 3.7% higher at 1,153.40p.