09:56 AM EDT, 05/14/2026 (MT Newswires) -- RBC Capital Markets raised its price target and forecasts for HSBC (HSBA.L) amid a model update following the UK-based banking group's first-quarter earnings report.

On Thursday, the research firm revised the price target to 12.75 pounds sterling from 12 pounds, while maintaining the sector perform recommendation on the stock.

"HSBC is a well diversified bank, delivering an attractive ROTE and shareholder returns. The bank has been successful at restructuring and simplifying the business over the last 5yrs, and we think that there is more to go,"analysts said in a note. "Asian wealth is a key growth area for HSBC which should continue to grow other income over the medium term. East vs West tensions are not as elevated as they have been."

Consequently, the adjusted EPS estimates were lifted by 2% for 2026 and 6% for both 2027 and 2028. Total revenue, after-tax profit and banking net interest income estimates were also increased over the three-year period.

"However, we believe all of the above factors are well reflected in the bank's current valuation, and we see more upside elsewhere,"RBC added.