HSBC price target raised to 1,200 GBp; Q4 revenue jumps 53%
RBC Capital increased HSBC’s price target from 1,050 GBp to 1,200 GBp while maintaining a Sector Perform rating, following Citi’s boost of its target to 1,540 GBp with a Buy rating. In Q4 2025, HSBC reported revenue up 53.3% YoY to $17.72B but EPS of $1.35 missed estimates by $0.45.
1. Analyst Price Target Increases
RBC Capital boosted its price target on HSBC from 1,050 GBp to 1,200 GBp and kept a Sector Perform rating, while Citi lifted its target from 1,370 GBp to 1,540 GBp and retained a Buy rating.
2. Q4 2025 Financial Performance
HSBC’s Q4 revenue surged 53.26% year-over-year to $17.72 billion, beating forecasts by $710.94 million, but reported EPS of $1.35 fell short of the $1.80 consensus.
3. One-Time Items Impact
Profit before tax rose by $4.5 billion to $6.8 billion, driven by a $3.3 billion net favorable impact from avoiding a £5.2 billion foreign currency reserve loss, leading to profit after tax of $4.6 billion.
4. RoTE Targets and Strategic Priorities
HSBC aims for a return on tangible equity of 17% or higher annually from 2026 through 2028, supported by earnings momentum, organizational simplification and portfolio optimization.