[ET Net News Agency, 1 April 2021] Credit Suisse lowered its target price for
Evergrande (03333) to HK$16.29 from HK$16.87 and maintained its "neutral" rating.
The research house cuts the NAV estimate by 3% with the dilution from lower margin to be
offset by its faster-than-expected capital recycling. Upside risks to the neutral rating
and TP of HK$16.29 include (1) better-than-expected margin level; and (2) better liquidity
from the higher-than-expected cash collection ratio. Downside risks for Evergrande include
(1) slower-than-expected sales, and (2) stake disposal by its second-largest shareholder
in the open market. (RC)