Liverpool Fans: Buy Standard Chartered?

The stock is currently trading below our fair value estimates, so it might be a bet you can bank on.

Ruth Saldanha 07 July, 2021 | 8:00
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Andrew Willis: Liverpool FC is a soccer team based in Liverpool, England.

James Gard: I'm a Liverpool fan and we're going to win the Champions League. That's right, we're going to really win.

Willis: Well, you're clearly invested in this and I hope Liverpool wins. But do you think you could invest in the team another way? Maybe you could buy Standard Chartered, one of their main sponsors. If you did, would you be a champion? Standard Chartered Bank has a large global footprint and is currently cheap by our fair value estimates. But it has no economic moat.

Michael Wu: We are positive on the bank's strategy in focusing on the affluent mass market. The strategy appears to be tracking well with 400,000 new affluent clients added in the last year, with two-thirds coming from its existing mass retail base. So, with this thematic in place and the bank's footprint in emerging markets that's exposed to rising middle class, we remain positive on the outlook for Standard Chartered.

Willis: If you invest in Liverpool through Standard Chartered, that might be a bet you can bank on.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Standard Chartered PLC438.90 GBX0.97Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Morningstar.ca

 
 

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