[ET Net News Agency, 17 September 2020] UBS Global Research lifted its target price for
MTR Corporation (00066) to HK$50.2 from HK$45.7 and upgraded its rating to "buy" from
"neutral" on expected COVID-19 recovery and medium-term growth.
The research house said MTRC's share price is down from the high of HK$55.70 in July
2019 to the current HK$39.65 due to the social unrest in Hong Kong in 2H 2019 and COVID-19
related impact.
With these now appearing priced in, UBS expects investor focus to shift to a near-term
recovery from COVID-19 as the third wave in Hong Kong subsides, and MTRC's medium-term
growth from its property development, shopping mall, and railway project pipeline.
UBS expects earnings to increase in 2021-25, averaging HK$22bn/year from about
HK$10bn/year between 2015-19, driving a DPS CAGR of 10%. (KL)