[ET Net News Agency, 21 April 2020] Morgan Stanley raised its target price for CLP
Holdings (00002) to HK$95 from HK$85 and upgraded its rating to "overweight" from
"equal-weight".
The research house said CLP Holdings' share price has already outperformed the broad
market by 13.9% year-to-date, due to its defensive nature. Morgan expects this
outperformance to continue, given (1) Hong Kong utilities are defensive by nature, (2) HK
Scheme of Control's return of 8% ROA is fixed until 2034, and (3) CLP Holdings generates
the highest operating cashflow and thus has the most room to raise its dividend. (KL)