G Sachs Raises HSBC HOLDINGS TP to HKD193, Expects USD1.5B Buyback in 3Q
Complete. Here is the key summaryGoldman Sachs raised its target price for HSBC Holdings to HKD193 and GBX1,860, maintaining a Buy rating. The broker cited strong Q3 underlying profit before tax of USD10.3 billion and constructive management messaging on cost discipline. Goldman Sachs forecasts USD1.5 billion in share buybacks for Q3 2026 and revised profit forecasts upward by 0.5% to 2% for 2026-2029, driven by expected cost increases offset by simplification savings.
Goldman Sachs issued a report on HSBC HOLDINGS (00005.HK) -3.700 (-2.222%) Short selling $1.05B; Ratio 22.925% , of which underlying profit before tax for 3Q was USD10.3 billion, above the company-compiled consensus and broadly in line with Goldman Sachs' expectations.
Although investors are focused on the operating expense outlook, the broker believed management's messaging was constructive. Management reiterated that incremental operating expenditure spending will depend on a stronger operating environment, while maintaining discipline over the bank's day-to-day operating costs.
For 2027, the broker assumes underlying costs will increase by 5%, partly offset by around USD500 million in simplification savings, resulting in a 0.5% to 2% upward revision to its 2026-2029 underlying profit before tax forecasts. It also forecasts share buybacks of USD1.5 billion in 3Q26 and USD2 billion in 4Q26.
Goldman Sachs raised its TP for HSBC London-listed shares from GBX1,752 to GBX1,860, and lifted its TP for the Hong Kong-listed shares from HKD181 to HKD193, mainly reflecting forecast changes. The Buy rating was maintained.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-04 16:25.)