[ET Net News Agency, 7 July 2020] J.P. Morgan raised its target price for ZhongAn
Online P&C Insurance (06060) to HK$50 from HK$36 but downgraded its rating to "neutral"
from "overweight".
The research house said the stock has rallied by 101% since the end of May. JPM believes
the current stock price factors in (1) a receding credit risk outlook in consumer finance
(i.e., improving risk-reward on B/S); (2) expectations of a faster scale-up in the health
& lifestyle consumption business, deemed to be capital-light, small-premium and
short-policy-duration; and (3) strong business development in technology, including the
Hong Kong SAR new virtual bank and virtual insurance entities.
Following the company's 1H positive profit alert, JPM does not expect additional
catalysts until interim results are reported in August. (KL)