China and UK Aim to Restore 'Golden Era' Business Discussions During UK PM's Visit to China: Report

The analyst rating from Citi Research for HSBC HOLDINGS is based on several key factors: 1. Lowered EPS Forecasts: Citi Research has slightly reduced its EPS forecasts for 2025-2027 by 0-1%, primarily due to the expectation of an additional Federal Reserve rate cut in 2026. 2. Higher Revenue Assumptions: Despite the slight decline in EPS forecasts, Citi's projections remain 2-9% higher than the latest market consensus for the company's profit before tax. This is attributed to expectations of strong revenue growth, particularly in non-interest income from the Asian wealth business. 3. Positive Return on Tangible Equity (RoTE): Citi believes that HSBC can achieve a RoTE of approximately 19-20% in 2027-2028, indicating strong profitability potential. 4. Increased Target Price: With the introduction of a 2028 forecast and an extended terminal year in its valuation model, Citi raised its target price for HSBC from $127.8 to $138.3. 5. Reiterated Buy Rating: Given these factors, Citi Research has maintained a "Buy" rating on HSBC HOLDINGS, reflecting confidence in the company's future performance despite the minor adjustments to EPS forecasts.