[ET Net News Agency, 24 October 2019] Morgan Stanley lowered its target price for
Guangzhou Automobile Group (GAC)(02238) to HK$10 from HK$10.5 and maintained its
"overweight" rating.
The research house said GAC's Japanese brands outperformed the market in 3Q, but Morgan
expects the continued weakness in its Trumpchi and FCA brands to weigh down GAC's
earnings. Morgan expects 3Q net profit to decline around 35%-40%, implying Rmb1.7-2bn.
Morgan also cut its net profit assumptions by 13%-20% for 2019-21. (KL)