[ET Net News Agency, 29 April 2020] Jefferies Research raised its target price for
Country Garden Services (CGS)(06098) to HK$32.42 from HK$27.54 and maintained its "buy"
rating.
The research house cited management on the analyst call saying that the majority of
proceeds from the CB issuance would be used for potential offshore M&A. Jefferies believes
the stock will be under pressure in the near term on the potential dilution, considering
the conversion price is only 11% above the latest closing price.
Jefferies increased its FY2020-22 earnings estimates by 3-4%. (KL)