Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a723602

The Expert View: Xaar, HSBC and Anite

by Chris Marshall on Dec 10, 2013 at 05:01

The Expert View: Xaar, HSBC and Anite

HSBC UK spin-off could add 60p to share price

A spin-off of HSBC’s (HSBA.L) UK arm would potentially add 60p to the shares, one analyst has said.

Based on a report in the Financial Times that HSBC has sounded out investors about a flotation of its UK arm – with ‘thinking at an early stage’ – Espirito Santo analyst Shailesh Raikundlia said the listing of HSBC subsidiaries could provide a further catalyst for the group that he already rates a ‘buy’.

‘Based on the assumption that 80% of value in Europe is UK and that the ring fenced operations represent half of the UK, which could be valued at £20bn based on 10x P/E, then this could potentially add around 60p to our SoTP valuation of 850p,’ commented Raikundlia.

‘Therefore, such a move would crystallise a higher rating for the whole group, especially in the light of buoyant investor sentiment on the UK economy.’

‘For HSBC, a carve-out of the UK business would help to deal with the requirements of the incoming Vickers rules, which demand that UK banks ring-fence their domestic retail banking operations,’ the analyst added.

Shares in HSBC slipped 0.2% on Monday to 657p.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • Firstgroup PLC (FGP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Xaar PLC (XAR.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Anite PLC (AIE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Domino's Pizza Group PLC (DOM.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • HSBC Holdings PLC (HSBA.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • National Express Group PLC (NEX.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Go-Ahead Group PLC (GOG.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Stagecoach Group PLC (SGC.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet