Standard Chartered Share Discussion Threads

[kiwi2007] 14/11/2013 03:39

Another 'Buy' Standard Chartered, from Investec

Investec has reiterated its 'buy' recommendation on Standard Chartered (STAN.L), saying the bank remains the UK's cheapest.

The emerging markets-focused bank announced that it's ditching its ambition to achieve double digit growth in income in response to tough regulations and lower economic growth, pushing the shares down.

Nonetheless, Investec's Ian Gordon remains upbeat: 'Standard Chartered looks (very) interesting. First up, it remains THE cheapest ''UK bank'' on 9.4x 2014e earnings per share.

'Secondly, 2014 revenue ''guidance'' remains well above consensus – ''high single digit'' vs consensus 6.5%.

'Thirdly, 2014 Wholesale Banking revenue growth guidance is ''double digit'' vs our forecast of a mere 9.3%.

[libertine] 13/11/2013 12:27

Nomura has maintained its 'buy' rating and 1,810p target price for emerging markets-focused bank Standard Chartered saying that the company's medium-term guidance is still better than consensus estimates despite a reduction in targets this week.

"There still appears to be scepticism in the market that it is not out of the woods yet as far as Asian concerns go. We believe this will remain the case until STAN can convincingly show sequential growth, which we expect from 1Q14. Read-across from Asian peers will be equally important in this context. STAN remains a stock owned predominantly in the West, and is therefore the West's sentiment beacon on the East. With growth prospects for Asia turning for the positive, we believe STAN is well positioned at reasonable valuation."

[rimmy2000] 13/11/2013 10:07

sold half my holding on the drop, will sell the other if it falls again. it was trading in a formation but looks like it might head lower. monitoring for now.

[kiwi2007] 13/11/2013 10:03

The FTSE Asia Pacific index is down 0.9 per cent, hit by the Chinese plenum anticlimax and uncertainty over when the US Federal Reserve might start reducing its massive stimulus - FT

[deans] 13/11/2013 09:58

Ian would like to know as well. Latest recent news has a French statement which looks negative but as my knowledge of French is v poor not sure whether that has anything to do with it.

[ian davenport] 13/11/2013 08:16

anyone any ideas on this drop this morning? seen a few broker outlooks recently , but cant find any overnight news

[hvs] 11/11/2013 14:22

lol !!!!!!

2% wow

[zulu001] 11/11/2013 14:21

Up over 2% today.

One more for the Filter.

[hvs] 11/11/2013 13:02

What rise ?????

[zulu001] 11/11/2013 13:00

Nice rise.

[miata] 11/11/2013 12:49

Investec

STAN Price: 1484p | Target: 1900p | Rec: Buy
Against a backdrop of sellside downgrades in the aftermath of a resilient Q3 IMS on 29 Oct, STAN has notably outperformed the UK bank sector over the past month and, looking through today, we expect considerably more over the year ahead. We see an emerging 2014 EPS consensus of 238c as wildly inaccurate; as product-specific headwinds of 2013 abate, we expect a material re-acceleration in revenues in 2014e. Factor in the correct tax rate (which most forecasts don't) and we see 29% EPS growth to 256c in 2014e. BUY.

STAN hosts an investor day from 10am this morning, and we expect a nondescript RNS to be issued shortly. After the Q3 update, and with a pre-close trading statement on 4 December, no trading commentary is anticipated today.
We hope that today's presentations will act as an overdue wake-up call to "reset" the market's medium-term expectations. Despite Standard Chartered's sustained best-in-sector revenue growth, it trades on just c.9x 2014e EPS – it is THE cheapest UK bank. The market appears to believe that it has gone ex-growth, yet in our view, nothing could be further from the truth.

It is no secret that 2013e revenue growth within the Wholesale Bank has been adversely affected by sharp Q1 margin compression within cash and trade, and lower "own account" income in ALM and Principal Finance. We model "only" 2.7% for WB. However, within Trade, (where we expect a small yoy decline in revenues in 2013e) the simple mathematical output of sustained double-digit volume growth, combined with an extrapolation of the broad margin stability seen through Q2/Q3 would be a return to double-digit growth in 2014e, when we forecast 11% within Trade and 9% for Wholesale Banking division overall.

We recognise challenges in Korea/India/Singapore, but quite simply, with receding product headwinds in 2014, absent substantial fresh adverse developments, a material re-acceleration in growth is a base case expectation.

Buy rec and 1900p RoE-g/CoE-g derived TP reaffirmed. STAN is our top pick!

11 Nov 2013 Standard... STAN Investec Buy 1,509.00 1,483.50 1,900.00 1,900.00

[hervey] 29/10/2013 23:04

Thanks smythy4 et all, just bought 10,000,000 shares in FML, I was quick! Hope you're right. Now crawl back...

[miata] 29/10/2013 11:44

Deutsche on Interim Management Statement

StanChart's trading update includes no numbers but confirms nine month
income up low single digit %'s, costs up in line with income, and loan losses
unsustainably low at sub $300m in 3Q. Adding management's expectation of a
$260m UK bank levy for the year (DBe $300m previously) and associate/JV
profit of $224m we have FY PBT of $7.6bn in line with our existing estimate.

As with 1H13 results the mix of profit is weaker than we forecast. Revenues
are 2-3% weaker, c.1% of which is down to FX, leaving StanChart printing
income down 0-5% YoY in 3Q12. Top line weakness is primarily within
Wholesale which is flat for 9m, driven by what looks like 15-20% YoY decline
in own account income (principal finance and ALM) and a significant fall in
Financial Market revenues in 3Q. The mix of client WB revenues are
disappointing with Corporate Finance strength (which includes a lot of lending)
and margins in Trade and Cash stable rather than up relative to a weak 1H13.

Credit costs, a perennial bug bear for many, are running better than our
forecast with CB loan losses in line with 1H13 (78bps) and WB losses are an
implied c.$50 or 12bps of average loans in 3Q13 from 29bps in 1H13. The
group reports that it is "not seeing any material deterioration across our
Wholesale portfolio".

Net all no reason for a change in views. There's no meaningful growth being
generated and, though costs are being flexed in line with top line performance,
forecasts must be for higher loan losses next year which will crimp profit
growth even if the top line improves. At 10x and 9.2x 2014 and 2015 EPS, 1.5x
2014 TNAV for a 14% ROTE, the stock looks roughly fair value. We expect
confirmation that StanChart is comfortable with underlying consensus EPS of
217c-235cps but highlighting a volatile environment.

[pugugly] 29/10/2013 09:17

birdsedgeuk:> Excellent - Almost should have a thread of it's own with the heading "Read this before venturing into the minefield" with possible cross links to example companies such as VIY. !!

[smythy4] 29/10/2013 08:18

Big news coming on FML? Ex CEO predicts 8 fold (yes 8 fold!) increase in market cap by end of 2014. Sp has been battered...news due soon.

Be quick!

[birdsedgeuk] 29/10/2013 06:33

Good readhttp://www.traderdiary.co.uk/in-rut/4578581884

[miata] 28/10/2013 09:10

Standard Chartered had its "hold" rating restated by analysts at Deutsche Bank in a research report issued to clients and investors on Monday. They currently have a GBX 1,645 ($26.61) price objective on the stock.

[miata] 17/10/2013 19:18

Dividend payment 17/10/13 .288 USD 11/10/12 .273 USD +5.7% YoY.
Dividend payment 17/10/13 .17888 GBP 11/10/12 .168 GBP +6.5% YoY.

[keyhole] 17/10/2013 19:01

2013 interim STAN divi now paid out. 28.8c = +6% yoy.

[philo124] 16/10/2013 11:58

Thanks again.

[miata] 16/10/2013 10:14

US politicking affects the value of US treasuries which underpins investment banking activities - a core business of STAN.

[philo124] 15/10/2013 09:20

Canaccord Sell 1325p target; but then they have target of 3000p for BATS.

[wllmherk] 14/10/2013 16:01

thanks miata