Morgan Stanley stays at underweight on StanChart

The outlook for asset quality at Asian banks has deteriorated since StanChart's strategic review was carried out because of slowing economies and lower commodity and property prices, analysts at Morgan Stanley said on Tuesday.

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

FTSE 350

4,453.56

15:45 15/11/24

n/a

FTSE All-Share

4,411.85

15:45 15/11/24

n/a

Standard Chartered

944.80p

15:45 15/11/24

0.66%

6.20p

As a result, the broker's analysts upped their estimates for credit costs, bringing them to approximately 42% to 30% below the analyst consensus for StanChart's earnings per share in 2016 and 2017.

Hence, they reiterated their recommendation to 'underweight' and lowered their bear case to 261p, according to a summary of a research note sent to clients.

-- More to follow --