[ET Net News Agency, 28 January 2019] HSBC Global Research raised its target price for
China Everbright International (CEI)(00257) to HK$9.6 from HK$8.9 and maintained its "buy"
rating.
The research house said CEI is its top pick in the environmental sector due to its
established track record in the environmental sector with a visible project pipeline as
well as sufficient capital to accelerate expansion and market share in this fragmented
market.
Investors may still be concerned about the company's unexpected rights issuance in
August 2018. However, HSBC does not see another risk of equity raising in the near term.
It thinks the stock looks attractive with a PE valuation 45% below its historical mean
since 2010. (KL)