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Investing.com - JPMorgan has raised its price target on Standard Chartered Plc. (LON:STAN) (OTC:SCBFF) to HK$18.80 from HK$17.70 while maintaining an Overweight rating on the stock. The upgrade comes as Standard Chartered shares have surged 90% year-to-date and 86% over the past year, according to InvestingPro data. The stock currently trades at $22.26, slightly above its Fair Value estimate.
The bank cites Standard Chartered’s wealth management growth potential as a key factor in the upgrade, noting that wealth services currently represent about 15% of group revenue for 2025 estimates and are projected to grow at a 15% compound annual growth rate from 2024 to 2027. This aligns with the bank’s overall revenue growth trajectory, which has maintained a 6% five-year CAGR with recent revenue growth of 9.28%.
JPMorgan highlights that Standard Chartered has been attracting more than 60,000 new affluent customers per quarter, a trend expected to continue and drive over $50 billion per year in net new money across wealth and deposits, representing an average net new money rate of 12% of assets under management from 2025 to 2027.
The research firm expects approximately 60% of net new money to flow into wealth products, driving a 17% compound annual growth rate in wealth assets under management from 2024 to 2027, while deposits are projected to grow at a 12% compound annual growth rate and gradually convert into wealth products. InvestingPro data shows Standard Chartered maintains a "GREAT" overall financial health score of 3.3, with particularly strong price momentum metrics, supporting its growth trajectory in wealth management.
Standard Chartered plans to hold an investor update in May 2026, where JPMorgan anticipates the bank will outline a sustainable path toward approximately 14% return on tangible equity. The bank’s current return on common equity stands at 9%, with analysts forecasting EPS of $2.24 for fiscal year 2025.
In other recent news, JPMorgan has raised its price target for Standard Chartered to HK$190 from HK$168, maintaining an Overweight rating. This adjustment follows a robust third-quarter performance by Standard Chartered, which has led JPMorgan to increase its earnings per share estimates by 3-6% for the fiscal years 2025 to 2027. The decision came after investor meetings with Standard Chartered’s CFO, Diego De Giorgi, which provided insights into the company’s financial outlook. The analyst firm highlighted the strong outlook for the bank, reflecting confidence in its future earnings potential. These developments underscore the positive sentiment surrounding Standard Chartered’s financial health and strategic direction.
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