What changed
$HSBC — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 latest | Rev $19.1B | EPS $2.20 vs $2.16 🟢
💡 Consensus expected a modest EPS of $2.16, but HSBC delivered $2.20, implying ~2% upside. More importantly, forward guidance suggests ROTE improvement to low-teens, whereas consensus prices in stagnation. Variant view: cost restructuring and Asian wealth growth will drive positive revisions.
📉 Reward/risk: 2.5:1
🏢 Business Quality: 6/10 - Global diversified bank with strong deposit base but historical returns below cost of equity; restructuring showing green shoots but geopolitical risks remain elevated.
📊 Valuation: fair - Annualized P/E 11x, near peer average for European banks (8-10x) but discount to US money centers (10-12x); P/B likely ~0.85x.
🔮 Catalyst: Next quarterly report or investor day with capital return update
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/HSBC0622