[ET Net News Agency, 16 October 2018] BofA Merrill Lynch lowered its target price for
WH Group (00288) to HK$8.5 from HK$9.3, and maintained its "buy" rating.
The research house lowered its 2018/19 EPS forecasts by 3%/6%. It forecast 3Q operating
profit to decline by double digit, given continued drag from the US and softer margins in
China.
Heading into 2019, BofAML expects Smithfield (SFD) to likely bottom out but China might
face uncertainties on margins. Considering SFD's higher earnings weighting and China's
relatively lower earnings volatility, the overall earnings momentum could likely improve
from the current trough. (KL)