[ET Net News Agency, 22 May 2020] Nomura lowered its target price for Agricultural Bank
of China (ABC)(01288) to HK$3.83 from HK$4.12 and maintained its "buy" rating.
The research house expects ABC to deliver stable operations amid economic uncertainties
led by the COVID-19 pandemic, with relatively steady earnings growth at 4.5% for 2020,
versus 4.6% for 2019.
Nomura thinks the steady earnings growth would be mainly driven by accelerated volume
expansion given monetary policy stimulus, despite continued NIM and asset quality
pressures. But it thinks asset quality pressure may start to surface from 2Q, despite
stable NPL numbers delivered by ABC. (KL)