[ET Net News Agency, 25 October 2019] UBS Global Research lifted its target price for
Zhongsheng Group (00881) to HK$26.6 from HK$25.3 but downgraded its rating to "neutral"
from "buy".
The research house thinks the market has priced in (1) above 20% earnings growth for the
next three years; (2) strong retail prices and sales performance of Lexus; and (3)
Mercedes retail prices holding up better than market expectations.
After rallying more than 60% year-to-date, the company trades at 9.3x 2020 PE and UBS
believes its current valuation is fair. (KL)