[ET Net News Agency, 7 July 2020] Jefferies Research initiated coverage on Country
Garden (02007) with a "buy" rating and target price of HK$12.23.
The research house likes Country Garden's strong execution and the absolute leading
position in low-tier cities. Jefferies acknowledged the company's slower sales growth on
its sizeable base and suggested that investors focus on its improving balance sheet for
long-term sustainable growth.
Jefferies also finds its 7-8% dividend yield attractive and expects the low-tier market
recovery in 2H to lead to the stock re-rating from its current below-peer valuation. (KL)