The analyst rating from JPMorgan for HSBC HOLDINGS and STANCHART is based on the belief that the potential downside scenarios related to Middle East conflicts and private credit exposure risks have already been largely reflected in the current stock prices. Despite the expected declines in earnings per share (EPS) and return on tangible equity due to these risks, JPMorgan sees this as an appropriate time to build positions in these stocks. The medium- to long-term investment outlook remains positive, with an expected total return of around 7% even under stress scenarios. Consequently, both stocks have received an Overweight rating, with JPMorgan raising its target price for HSBC HOLDINGS and maintaining the target price for STANCHART.
