HSBC Holdings PLC ( LSE:HSBA , NYSE:HSBC ) price target was cut by RBC following lower profit forecasts, while Citi retained its 'neutral' rating amid questions over Hong Kong deposit migration.
RBC lowered its target to 1,325 pence from 1,375 pence and retained its sector perform' rating following the third-quarter results.
The broker cut its 2027 adjusted pre-tax profit estimate by 6% to $41.875 billion from $44.618 billion, mainly due to weaker net interest income from Hong Kong banking.
Its revised 2027 banking net interest income forecast of $48.3 billion includes contributions from asset growth, structural hedging and interest rates.
Offsetting some of those gains, RBC estimated that Hong Kong deposit migration and strategic exits would each subtract $0.6 billion from its income bridge.
The deposit outlook also featured in Citi's analysis, which examined the potential impact of further migration on interest income.
Citi said time deposits rose from 36% to 38% of HSBC's Hong Kong deposits, nearing the previous peak of 40% but still below the banking system average of 57%.
Against that backdrop, Citi questioned whether further migration explained HSBC's unchanged financial year 2026 net interest income guidance of more than $46 billion.
The broker noted that this guidance implied fourth-quarter income above $11.4 billion, compared with $11.7 billion in the third quarter, potentially signalling a lower exit trajectory into 2027.
Citi reported a 6% share-price fall despite small revenue misses and pre-tax profit in line with expectations, while RBC separately quoted a prior closing price of 1,291.40p.
