[ET Net News Agency, 14 October 2019] Goldman Sachs reinstated on HKEX (00388) with a
"neutral" rating and a target price of HK$225. It believes the focus for investors in the
near term will be HKEX's excess cash position (US$3bn, 8% of market cap).
If HKEX does not pursue another transaction, Goldman thinks HKEX could return cash to
shareholders via buybacks or special dividends. In addition to the cash usage debate,
market volumes and/or strategic next steps could shape future share price performance.
The research house believes it's too early to take a view on what HKEX could do with its
excess cash. Management has kept its options open after not proceeding with the LSE bid.
Goldman trimmed its EPS estimates by up to 4% following September data. (KL)