This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Attractive technical set-up: November uptrend still valid, shares corrected 10% from Jan highs, shares weathered recent sell-off well (fell the least this week, and bounced the most). Exposure to Asian growth is a major positive, keeping the bank sheltered from the Brexit uncertainty that is hindering peers. Also very limited exposure to UK housing market.
Broker Berenberg (5 Feb) says STAN and HSBC have edge over competition thanks to emerging market focus. Broker Goldman Sachs (26 Jan) added STAN to its conviction Buy list, saying 40% cheaper than HSBC, and a bigger beneficiary of rising US interest rates.
Consensus is balanced offering potential for upgrades in the case of a share price bounce, especially with 73% of target prices still suggesting downside from current levels. Mispriced?
Next Event: FY 2017 results, 27 Feb;
Latest Broker 12-Month Consensus: 31% Buy, 35% Hold, 34% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.4 | 0.8 | 10.7 | -0.3 | 1.1 | 76.6 | -10.4 | -32.2 | -49.1 |
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