[ET Net News Agency, 12 March 2018] BofA Merrill Lynch lifted its target price for
CITIC Securities (06030) to HK$20.6 from HK$17.7, and upgraded its rating to "buy" from
"neutral".
The research house believes CITICS has recovered from the management shake-up in late
2015 and the loss of market share in 2016. With the stabilization of management and growth
strategy, CITICS has regained its brokerage and margin financing market share in 2017
and year-to-date, and expanded in multiple business lines, including derivatives and
investment banking.
Its overseas business, especially the Hong Kong part, also reported growth after the
consolidation in 2016. BofAML believes CITICS as the No.1 broker in China, has returned
to the place where it should be and it is well positioned for future growth.
BofAML raised its 2018-19 earnings forecasts by 9-11%. (KL)