[ET Net News Agency, 11 June 2019] Goldman Sachs tweaked down its target price for PICC
Group (01339) to HK$4 from HK$4.1 and downgraded its rating to "neutral" from "buy".
The research house said PICC Group has outperformed peers over the last month, down 6%
versus -13% for H-share peers. Goldman attributed this to the share price resilience of
PICC P&C (02328), which makes up 80% of PICC Group's valuation.
Goldman continues to see attractive risk/reward for PICC P&C, being the only pure P&C
insurance stock and its industry-leading position. Goldman expects PICC Group's share
price performance to follow that of PICC P&C, but with a lag given the relatively weak
position of its life insurance operation.
As a result, Goldman believes the relative risk/reward is now more in line with other
life insurance companies, following the out-performance. (KL)