JPMorgan raises Standard Chartered price target to £13.90

Published 24/02/2025, 06:18
JPMorgan raises Standard Chartered price target to £13.90

On Monday, JPMorgan analyst Raul Sinha adjusted the price target for Standard Chartered (OTC:SCBFF) Plc (STAN:LN) (OTC: SCBFF), increasing it to £13.90 from the previous £11.80. The firm continues to hold an Overweight rating on the bank’s shares. This revision follows Standard Chartered’s fourth-quarter results, which indicated a robust revenue outlook, positioning the bank at the higher end of its projected 5-7% compound annual growth rate (CAGR) from 2023 to 2026. The bank’s stock, currently trading at $15.00, has achieved an impressive 83.9% return over the past year and is trading near its 52-week high, according to InvestingPro data.

Sinha’s analysis reveals that earnings per share (EPS) estimates for Standard Chartered have been lifted by 6%, 5%, and 4% for the upcoming years, based on the bank’s strong fourth-quarter performance. The forecast for revenue growth remains positive, while cost projections are expected to stay at targeted levels. The bank’s loan growth is anticipated to recover progressively throughout the year.

The analyst also noted an increase in the expected share buyback program for the fiscal year 2025, now predicting an additional $0.25 billion, raising the forecast to $2.75 billion. This is with an expectation that $1.5 billion will be announced in the first half of the year. Dividend per share (DPS) forecasts have also been raised, leading to a projection of over $8 billion in total shareholder distributions between 2024 and 2026, surpassing both the group’s target of more than $8 billion and the consensus of around $9.5 billion.

The bank’s return on tangible equity (ROTE) is projected to continue its upward trajectory, increasing from 11.7% in the fiscal year 2024 to 13.2% by 2026, according to JPMorgan’s estimates. This growth trajectory firmly supports the bank’s target of ’approaching 13%’ ROTE by 2026. InvestingPro analysis reveals the bank maintains strong fundamentals with revenue growth of 14.15% and has consistently raised its dividend for five consecutive years. Subscribers can access 10+ additional ProTips and comprehensive financial metrics in the Pro Research Report.

In conclusion, the revised December 2026 price target of £13.90 reflects a 0.9x price-to-tangible net asset value (PTNAV) exit valuation. This adjustment is made in the context of Standard Chartered’s current trading multiples, which stand at 6.5x price-to-earnings (PE) and 0.8x PTNAV for an ROTE of 13.2% expected in 2026. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at its current market capitalization of $35.57 billion, with a P/E ratio of 9.69 suggesting attractive valuation relative to its growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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