BUZZ-HSBC: UBS raises PT, reiterates "buy"

** Bank HSBC's shares up 1.6 pct, near the top of the FTSE, after UBS (LSE: 0QNR.L - news) analysts raise PT on stock to 535p from 450p, keep "buy" rating

** Analysts cut estimates to assume lower margins on UK banks, say Standard Chartered (HKSE: 2888.HK - news) , HSBC do best given their business mix, add lower EPS estimates are offset by weaker pound for both banks

** UBS hikes PT on StanChart (HKSE: 2888-OL.HK - news) to 510p from 450p, but keeps "sell" rating, shares up 0.8 pct

** Analysts also cut Barclays (LSE: BARC.L - news) to "neutral" on weaker outlook for domestic and capital market banking, increased regulatory uncertainty, shares down 0.7 pct

** HSBC shares biggest lift to Stoxx 600 Banks index , while Barclays biggest drag

(venkateshasoumithri.mamidipudi.thomsonreuters.com@reuters.net)