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Alexander Bueso Sharecast News
17 Nov, 2020 13:16 17 Nov, 2020 13:16

Berenberg says StanChart set to resume 'attractive' capital returns, stays at 'buy'

Analysts at Berenberg reiterated their 'buy' recommendation for shares of Standard Chartered, telling clients the lender was now on a path for steady growth from 2022 onwards and to restart returning capital as soon as the following year.

Banks

4,677.17

15:45 15/11/24
1.24%
57.25

FTSE 100

8,060.61

15:45 15/11/24
n/a
n/a

FTSE 350

4,453.56

15:45 15/11/24
n/a
n/a

FTSE All-Share

4,411.85

15:45 15/11/24
n/a
n/a

Standard Chartered

944.80p

15:45 15/11/24
0.66%
6.20p

At present, interest rate headwinds were offsetting the improvement, but the underlying picture was "robust" with the lender increasingly showing its ability to grow while controlling costs and risk.

Hence, revenues were set to be stable in the 2021 financial year and grow 5% thereafter.

In parallel, "attractive and sustainable" capital returns were set to resume in 2021.

Yet changing hands on an estimated price-to-earnings multiple of only 5.9 for 2022, its prospects remained "underappreciated", the broker surmised.

"Buy," it said, keeping its target price for the shares at 500.0p.

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