[ET Net News Agency, 19 July 2019] Goldman Sachs lowered its target price for Hong Kong
Exchanges (HKEX)(00388) to HK$238 from HK$270 and downgraded its rating to "sell" from
"neutral".
The research house said HKEx's share price has been fairly resilient against the
backdrop of weak volumes, outperforming the HSI by 10pp year-to-date. Goldman believes the
market has overestimated the upside from strategic initiatives announced in February 2019
such as the launch of MSCI China A index futures, and the secondary listing of Chinese
ADRs in HK.
However, given the likely lack of meaningful near-term upside and uncertainty, Goldman
has not factored these in its numbers. It would turn positive on the stock if it sees
better volume picture emerge or if faced with signs that the potential impact from
strategic initiatives will be material to 2020 EPS.
Goldman cut its 2019/20/21/22 EPS by 6%/9%/9%/9% on continued weakness in equity market
volumes and lower HIBOR estimates (which impacts investment income). (KL)
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00388 HKEX
Nominal 
214.800 -3.800 (-1.738%) Others
19/07/2019 13:53
[I-bank focus]Goldman downgrades HKEX (00388) to HK$238
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