Sharecast - Berenberg said Standard Chartered's shares had risen 22% year-to-date, partly reflecting speculation that the bank could be acquired.
"While a potential takeover may provide a backstop for the shares, our attraction to Standard Chartered is predicated on the underappreciated strength of its unique global business," said Berenberg. The bank's recent Q4 2022 results help to demonstrate why."
The German bank highlighted that Standard Chartered's outlook for growth, efficiency and returns exceeded its own and consensus expectations.
"Moreover, the strength of the bank's balance sheet can support sustained attractive capital returns, of circa 8.7% per year, in our view," added Berenberg, which stood by its 'buy' rating on the stock.
"Trading on 0.67x TBV versus our FY 2024E RoTE of 10.7% (below company guidance), we believe these strengths remain underappreciated."
Reporting by Iain Gilbert at Sharecast.com