G Sachs Cuts HKEX Target to $142; Rated Sell
HKEX (00388.HK) -5.930 (-3.066%)
Short selling $746.67M; Ratio 42.857% 's shares are flat ytd in the face of over 20% EPS downgrades by Goldman Sachs and the market, mainly due to the market willingness to overlook current low volumes and wait for a pick up catalyzed by either the launch of Shenzhen-Hong Kong Connect and MSCI's decision on A-share inclusion. The research house expects that either two will not affect HKEX earnings by much (at maximum 2-3% of annual top-line). However, the key risk to the Sell rating on HKEX remains a broader China equity market rally.
Goldman Sachs revised down 2016-2018 EPS forecast of HKEX by 0.4%/ 6.8%/ 13.9% and trimmed the target price to $142 from $144.
HKEX (00388.HK) -5.930 (-3.066%)
Short selling $746.67M; Ratio 42.857% 's shares are flat ytd in the face of over 20% EPS downgrades by Goldman Sachs and the market, mainly due to the market willingness to overlook current low volumes and wait for a pick up catalyzed by either the launch of Shenzhen-Hong Kong Connect and MSCI's decision on A-share inclusion. The research house expects that either two will not affect HKEX earnings by much (at maximum 2-3% of annual top-line). However, the key risk to the Sell rating on HKEX remains a broader China equity market rally. Goldman Sachs revised down 2016-2018 EPS forecast of HKEX by 0.4%/ 6.8%/ 13.9% and trimmed the target price to $142 from $144.
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