Standard Chartered Share Discussion Threads

[miata] 19/2/2013 12:21

More from the Morgan Stanley note:

We see an opportunity to switch into STAN. STAN's improving Asia outlook implies lower risk of NPL pickup,and India/MESA appears to be normalizing. This
indicates the asset quality concerns underpinning our previous EW may fade. We believe the shares underperformance presents an opportunity and upgrade to OW. We raise our STAN price target by 16%, as we increase 2015 EPS by 4% and we link valuation to a higher 2015 RoTE/TBV (HSBC already on this basis).

HSBC has now performed well (+27% over past year) on strong Asian earnings and an improved balance sheet. It now appears fully valued, in our view, given an uninspiring revenue outlook, and we move to EW. We do see room for payout increases at HSBC and raise our payout expectations to 50% (with 35% scrip
component). This gives a cash yield of ~3.3%, but we see the top end of consensus as too bullish on dividends, as we expect HSBC to aim for capital ratios towards the top of the pack and to deploy capital for balance sheet
growth.

Valuation: The traditional 1-1.5x PE premium afforded to STAN due to faster growth and cleaner Asia exposure has closed to ~zero, with both trading at ~10x 2014e. On 2015e P/TBV (which accounts for differential TBV build) both stocks trade at 1.3x, but we would expect that a premium for STAN would justified by stronger growth and its higher 2015e RoTE (16% vs. HSBC at 14%).

Stan's developed markets exposure's just 14%, versus HSBC at 64%

[philo124] 19/2/2013 09:47

Agreed;i had £18 target but looking at eps forecasts with fair divi it's putting
me off selling some. I only hold STAN & HSBC in bank sector, both in SIPP,
1250 & 2000 repectively. I am a bit overweight in STAN, having bought sub
£12 last October.
Just checked, it was at 1104p.

[miata] 19/2/2013 09:33

19 Feb Standard... STAN Morgan Stanley Overweight 1,768.50 1,729.50 1,656.00 1,924.00 Upgrades

Bit late in joining the party.

01-Feb-13 Citigroup Buy 1,688.00p 1,850.00p 1,920.00p
29-Jan-13 Goldman Sachs Neutral 1,672.00p 1,900.00p 1,950.00p

[philo124] 19/2/2013 09:24

Morgan Stanley- 1924p target this am. lol.

[bingowing] 18/2/2013 18:40

indeed, probably been holding this down IMO.


Tomorrow will tell.

[philo124] 18/2/2013 18:34

AND BT same time.

[philo124] 18/2/2013 18:30

See also GSK, same time.

[philo124] 18/2/2013 18:24

Thanks, probably immaterial but at least it's gone. See BG Group- same- ish.

[bingowing] 18/2/2013 18:20

massive sell at close of play.

lets see if thats been holding this back.

[bingowing] 13/2/2013 14:35

breaking out IMO

[miata] 12/2/2013 15:18

The market has traditionally valued Standard Chartered very differently to Barclays, Lloyds and Royal Bank of Scotland.

The 9% rise that the shares have enjoyed in 2013 has pushed the 2014 P/E to 11.3 times consensus forecasts.

Standard Chartered is expected to increase both earnings and dividends by around 9% a year for the next two years.

Despite receiving five earnings upgrades in the last month, the shares are still cheap.

[bingowing] 12/2/2013 13:41

Looks to be breaking out..

IMO

[miata] 11/2/2013 09:50

Though £17, one year high. Last at this level 18/01/2011. ATH £19.75 05/11/2010.

[sanks] 04/2/2013 18:29

Me and my bird Sheila have these marked at possibly testing £12.57
Technicals are calling, keep hold of your nobs..this could be painful....

...if you need any respite, its by the oak tree....

................ ................

[miata] 10/1/2013 16:57

STAN is one of Richard Hunter's picks for 2013:

Standard Chartered
Although a UK company, Standard Chartered derives around 90% of its income and profits from Asia, Africa and the Middle East. December's trading statement confirmed the company was firmly back on track after August's $327m fine from the New York regulator relating to transactions with Iran.

Standard is a rare example of a bank in hiring mode, particularly in China and Africa where it anticipates further growth. Despite the US fine, December's update also highlighted improved financial features, including revenues, lower loan impairments, general asset quality and strength in liquidity and capital. Over the last six months the shares have staged a quiet yet robust recovery, having risen 15% as compared to a 6.8% gain for the FTSE 100. This return to business as usual is reflected in a strengthening market consensus, now a buy.

[miata] 09/1/2013 12:28

09 Jan Standard... STAN Bank of America Merrill Lynch Buy 1,647.00 1,606.50 1,745.00 1,865.00

[miata] 09/1/2013 12:23

It was a high risk punt (07/08/12 10:37 1134p) but with a correspondingly high reward expected. Have added more since. I reckon there is further upside to come over the next three months.

[philo124] 09/1/2013 12:15

LOL! I did buy some at 11.05; had to instruct him, now calls it the Buy of the
Year. Actually looking at eps forecasts, £18 possible; but black swan event would again screw that up.

[leadersoffice] 09/1/2013 12:12

What a steal these were when they hit £11.00 ish... my broker said that it was a high risk punt! just goes to show how often they get it wrong.

[miata] 03/1/2013 12:04

03 Jan Standard... STAN Citigroup Buy 1,613.50 1,610.00 1,825.00 1,850.00