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(Sharecast News) - Deutsche Bank downgraded HSBC on Monday to 'hold' from 'buy' but lifted the price target to 910p from 830p after recent share price gains.
HSBC doesn't have to do a lot to maintain a healthy mid-teens return on tangible equity after many years of restructuring, Deutsche said.
"We expect any incremental restructuring will be relatively small and aimed at maintaining ROTE levels against a falling rate environment across a global cost base.
"If the scale of restructuring is contained, then we believe our capital return expectations could remain unchanged- one of the key attractions of the stock."
However, DB said that after a "substantial" increase in share price, the value "is no longer there".
At 1055 GMT, the shares were down 2.2% at 826.80p in a sharply lower UK market.
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