Deutsche Bank reiterates 'buy' on StanChart, says higher rates will boost profits
Standard Chartered
982.60p
16:40 27/12/24
Robert Noble at Deutsche Bank reiterated his 'buy' recommendation for shares of StanChart, forecasting that the lender's profitability was set to expand significantly through 2024, boosted by interest rates.
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As well, the shares were offering "substantial value", they said, estimating that they were trading on a 2024 price-to-earnings multiple of 4.3 and 0.4 tangible book value.
Yet the lender was targeting a return on tangible equity of greater than 10.0% by 2024.
Noble did however concede that StanChart was unlikely to show the improvement in so-called 'jaws' during the first quarter required by the longer-term path to its target for a RoTE of greater than 10.0%.
Indeed, he believed that it would take some time to close the valuation gap.
The analyst nevertheless bumped up his target price from 610.0p to 620.0p.