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2026-09-03 20:31 6d ago
2026-09-03 12:01 6d ago
HSBC shares carry 'sell' rating as broker says valuation leaves no room for disappointment
HSBA HSBC
FMP Stock News
Original source text
Shore Capital has reiterated its sell recommendation on HSBC Holdings PLC (LSE:HSBA, NYSE:HSBC), warning the shares' punchy valuation more than reflects the bank's confident outlook.

Analyst Gary Greenwood kept his 1,335p target price, implying 13% downside from the current level.

The trading comment follows a roundtable hosted this morning by chief financial officer Pam Kaur, at which management said HSBC continues to trade well across most of its businesses.

Wealth client acquisition remains healthy and Trade Finance continues to gain share, with no evidence that recent Chinese regulatory measures are hitting customer behaviour or demand.

In the UK, management is prioritising relationship-led growth over pricing, pointing to HSBC's international banking franchise as a key differentiator.

Shore Capital said management's broader message was that the market may be underestimating the sustainability of earnings growth, citing a growing contribution from fee income and an enlarged $637 billion structural hedge that is reducing sensitivity to interest rates.

However, the broker cautioned that HSBC is currently benefiting from what management itself described as an optimal interest rate environment, with rates of 3% to 4% supportive of both economic activity and bank profitability.

Shore Capital said this backdrop remains unusually favourable and may prove difficult to replicate through the cycle.

The broker also flagged HSBC's capital allocation hierarchy, which places dividends first, growth second and buybacks third.

Prioritising a targeted 50% payout ratio ahead of buybacks suggests management does not view the shares as materially undervalued, Shore Capital said.

Returning around half of earnings to shareholders rather than reinvesting them also points to limited opportunities to deploy capital at returns materially above the cost of equity, the broker added.

On its estimates, HSBC shares trade on a 2026 forecast price to tangible net asset value of around 2.1 times for a return on tangible equity of about 18%, a valuation Shore Capital said assumes today's elevated profitability can be sustained over the long term.

While management is taking sensible steps to improve the durability of earnings, Shore Capital said it remains less convinced that cyclicality has disappeared from the business.

Even higher near-term returns would be required to compensate for periods of potentially lower future profitability, the broker said.

HSBC shares have risen 62% over the past 12 months, according to the note.

The bank reports third-quarter results on October 27.
2026-08-05 15:26 1mo ago
2026-08-05 04:38 1mo ago
Miivo AI highlights customer growth, expanding AI product portfolio
HSBA HSBC
FMP Stock News
Original source text
Miivo AI (TSX-V:MIVO) has highlighted growth in users, recurring revenue and product offerings in the first half of 2026 following the launch of three AI products aimed at helping businesses automate functions including financial analysis, lead generation and customer insights.

The company said it acquired more than 3,000 users during the six-month period, while average subscriber time spent on its platform increased significantly. Miivo also said it has helped businesses increase sales and acquire new customers, while expanding its base of recurring-revenue customers.

The company launched its Business Intelligence product, which integrates with accounting software to provide real-time dashboards covering revenue, cash flow, margins, operational performance and key performance indicators. The product also identifies potential risks and recommends actions aimed at improving profitability.

Its AI Lead Generation product identifies potential business-to-business customers, scores prospects against an ideal customer profile, enriches contact information, drafts personalized outreach emails and tracks campaigns.

Miivo also launched Reputation & Customer Insights, which monitors reviews and mentions across platforms including Google Reviews, Instagram and Reddit. The product analyzes customer sentiment, generates AI-written response drafts for businesses to review and publish, and provides internal recommendations based on customer feedback.

The company has also expanded its software engineering team and added a sales team focused on the North American market.

Miivo said the developments reflect a shift in its strategy toward building a portfolio of AI products designed to address specific business functions, rather than relying on a single software platform. The approach is intended to provide multiple entry points into the company's broader ecosystem.

"We are extremely pleased with the rate of growth the business has achieved over the past six months," the company said.

"Much of 2025 was dedicated to designing, developing, and rigorously testing our software. Following the launch of our products in 2026, we have seen tremendous customer uptake and strong market demand."

The company also highlighted its SOC compliance and said it remains focused on security, reliability and ease of use as businesses increasingly adopt AI technologies.

Miivo pointed to an estimated global market of more than 400 million small and medium-sized companies as an opportunity for its products. It cited McKinsey & Co.'s estimate that generative AI could unlock US$200 billion to US$340 billion in annual productivity value once companies deploy AI finance functions.

The company said it expects demand for specialized AI solutions to grow as adoption accelerates, particularly for products that can address specific business functions without lengthy implementation cycles.
2026-08-05 15:26 1mo ago
2026-08-05 07:35 1mo ago
Citi downgrades HSBC to 'neutral' after 40% run
HSBA HSBC
FMP Stock News
Original source text
Citi has downgraded HSBC Holdings PLC (LSE:HSBA, NYSE:HSBC) to 'neutral' from 'buy', arguing that the shares need a breather after one of the strongest runs in the European banking sector this year.

The stock is up 40% since January, and the bank now trades on roughly 11 times forward earnings and 2.2 times price to tangible book for a return on tangible equity of about 18% to 19%.

Citi cut its price target to 1570p from 1640p, having trimmed earnings per share forecasts by up to 3%.

The argument is not that anything has gone wrong. It is that a further rerating from here requires investors to believe in a sustained period of faster top-line growth, and while Citi sees encouraging signs, it expects that to take time to come through.

Two nearer-term constraints also feature. HSBC has guided to incremental cost spending over the coming quarters, which Citi thinks may limit the scale of positive jaws in 2027, the gap between revenue growth and cost growth that banks use to demonstrate operating leverage.

The renewed emphasis on growing volumes may also cap the size of buybacks in the short term, removing one of the supports that has helped drive the shares this year.

The downgrade follows first-half results that came in ahead of expectations, with second-quarter pretax profit of just over $10 billion against a company-compiled consensus of $9.5 billion, alongside a fresh $1 billion buyback and a raised net interest income target.

The shares hit a record high in the session that followed before slipping back.
2026-08-04 17:46 1mo ago
2026-08-04 07:07 1mo ago
Arizona Gold & Silver lands C$12 million investment from Evolution Mining
HSBA HSBC
FMP Stock News
Original source text
Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) has landed a C$12 million investment from gold major Evolution Mining, which is taking a near-10% stake in the junior to help fund a major drilling push at its Philadelphia Gold-Silver Project in Arizona.

Under the deal, announced Tuesday, Evolution Mining Gold Operations Ltd, a subsidiary of Evolution Mining Limited, will acquire just over 15 million units of Arizona Gold & Silver in a non-brokered strategic private placement at C$0.80 per unit.

Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant entitling Evolution to acquire one common share at C$1 for three years from closing. Evolution is expected to hold an approximate 9.9% equity interest in Arizona Gold & Silver on a non-diluted basis following completion of the investment.

"This strategic investment marks an important milestone for Arizona Gold & Silver," said Mike Stark, Arizona Gold & Silver’s CEO.

"Evolution Mining is a C$23 billion globally recognized gold producer with an outstanding technical reputation. Its investment reflects confidence in our team, our assets and our long-term vision."

The company said it plans to use at least 90% of the gross proceeds, approximately C$10.8 million, to accelerate exploration at Philadelphia, with up to 10%, approximately C$1.2 million, allocated to general and administrative expenses. Priority exploration objectives include expanding the Perry Zone, testing the three-kilometer Arabian Fault corridor, evaluating potential beneath Red Hills and advancing the Eastern and Northeastern hyperspectral anomalies.

"Philadelphia is much more than a single-zone opportunity," said Dr Lex Lambeck, Arizona’s senior vice president of exploration. "We see a large mineralized system with multiple opportunities for discovery. Our goal is to apply district-scale geological thinking, advanced exploration technologies and disciplined drilling to systematically unlock that potential."

Upon closing, the company and Evolution will enter into an investor rights agreement under which Evolution will have the right to participate in future equity issuances to maintain its pro rata interest, top-up rights in connection with dilutive events, the right to nominate one board member or appoint a board observer, the right to participate in an advisory technical committee, and a first right of refusal over the sale of a 10% or greater interest in the Philadelphia project.

Shares of Arizona Gold & Silver jumped 26% on the news to trade at C$0.60 late morning on Tuesday. 
2026-08-04 17:46 1mo ago
2026-08-04 12:07 1mo ago
HSBC return to buybacks underwhelms despite improving earnings momentum
HSBA HSBC
FMP Stock News
Original source text
HSBC Holdings PLC's (LSE:HSBA, NYSE:HSBC) return to share buybacks was deemed a bit on the small side, despite the Asia-focused lender's stronger-than-expected quarter and improving business momentum.

The FTSE 100's largest company announced a $1 billion buyback alongside a 60% rise in second-quarter pre-tax profit to $10.1 billion.

It was the first buyback since HSBC paused repurchases to fund its acquisition of the remaining shares in Hang Seng Bank in October.

Jefferies analyst Joseph Dickerson called it a "modestly lower buyback than we expected", which "may underwhelm". He had pencilled in $2 billion, a figure he said appeared to match investor expectations, although there was no formal consensus forecast.

UBS had also expected $2 billion. Analyst Jason Napier said he was "surprised" the return was not bigger given the strength of HSBC's first-half performance.

The disappointment looks more about restrained ambition than weak trading, the analysts suggested.

Second-quarter profit excluding notable items beat company-compiled consensus by 5%, as income came in ahead of expectations and operating costs remained in line.

Loans increased 5% at constant currency, led by corporate and institutional banking and the UK business. Wealth income excluding net interest income rose 21%, while net new money increased 8%.

"The direction of travel for consensus estimates looks to be slightly upwards following a 6% PBT beat in Q2 with notable balance sheet growth," Dickerson said.

HSBC also raised expected savings from its restructuring to $2 billion from $1.5 billion. However, management flagged higher variable pay in the second half and investment intended to support revenue growth in 2027.

The bank strengthened its interest income guidance only slightly, from "around" $46 billion to "at least" $46 billion, while leaving its longer-term targets unchanged.

UBS retained its 'neutral' rating and 1,520p target, noting that HSBC is already valued at 2.2 times tangible book value.

Napier said: "In short, HSBC is performing better than consensus forecasts but didn’t deliver the Banking NII or buyback we’d forecast and, with targets unchanged and higher costs flagged won’t, we think, force a market rethink on the financial outlook today."