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HSBC shares drop 5.7% after Q3 earnings miss; buy rating with $105 fair value remains

Company Fundamentals
29 Oct 2026, 12:58 WIB
Seeking Alpha
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Neutral
HSBC shares drop 5.7% after Q3 earnings miss; buy rating with $105 fair value remains

HSBC shares fell 5.7% to $86.01 after reporting Q3 earnings of $2.05 per ADR, missing consensus by $0.13. Despite this, HSBC is rated a buy with a fair value of around $105 per ADR, suggesting a 23% upside plus a 4.9% dividend yield. The current earnings pressure is seen as temporary due to higher yields, with expected net interest income growth from hedge reinvestments in 2027–2028. Key risks include deposit pricing shifts that could lower fair value, while catalysts to watch are Basel 3.1 implementation in 2027 and upcoming full-year results with dividends and buybacks in early 2027.

HSBC shares trade at $86.59 on Pluang as of Oct 29, 2026, 17:11 WIB, slightly up 0.25% for the day. The stock's dividend yield is 4.34%, close to the article's noted 4.9%. Investors on Pluang hold HSBC for an average of 38 days, with nearly balanced buy and sell orders at 49% and 51%, respectively.

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