Goldman Sachs, in the latest research report, expected a begi market reaction to the Federal Reserve's rates hike. S&P 500 will rise further in 1H15, but P/E multiple will contract in 2H to 16x. The research house projected that S&P will climb to 2,100 by the end of 2015 for an approximately 5% total return.
CLSA lowers Beijing Ent Water (00371) to HK$6 CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating. The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not necessarily bad. CLSA cut its 2018-19 earnings forecasts by 19%. At the current level, it believes many of the negatives are already priced-in.
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