Hargreaves Lansdown argues that while Standard Chartered (LON:STAN) has delivered better-than-expected third quarter numbers, it still needs to work harder to grow in emerging markets, Citywire reports. The comments came after the Asia-focused lender posted its results yesterday, warning that the trade tensions between the US and China were weighing on sentiment in emerging markets.
Standard Chartered’s share price soared in the previous session as investors cheered the update, adding 3.15 percent to close at 549.50p. The rise helped the broader London market rally which saw the blue-chip FTSE 100 index gain 92.25 points to close 1.31 percent higher at 7,128.10. This morning, the shares are trading about 0.6 percent lower, as compared with about a 0.3-percent dip in the Footsie.
HL weighs in on Standard Chartered
Citywire quoted Hargreaves Lansdown analyst Nicholas Hyett as commenting that while the Asia-focused lender’s short-term numbers were positive, the “longer term concerns is that Standard Chartered continues to shrink” despite emerging market customer numbers growing. The bank delivered a 31-percent gains in profits yesterday, beating analyst forecasts, while cautioning that escalating trade tensions were “affecting sentiment in emerging markets”.
“We’ll have to wait until the strategy update next year to find out exactly how Standard Chartered intends to get loan origination heading in the right direction again,” the analyst elaborated, adding that the FTSE 100 bank’s “big strategic advantage is its position in fast-growing emerging economies, and it needs to take advantage of that”.
Other analysts on Asia-focused lender
Shore Capital reaffirmed StanChart as a ‘buy’ yesterday, without specifying a price target on the shares. According to MarketBeat, the Asia-focused lender currently has a consensus ‘hold’ rating and an average price target of 744.15p.