Goldman Sachs lowered its target price for Dah Sing Banking Group (DSBG)(02356) to HK13 from HK$15.7 and maintained its "neutral" rating.
The research house believes consensus may not fully reflect the declining 2019 GDP assumptions and thus consensus EPS could see some downward revisions. That said, Goldman said local banks appear to be pricing in the current GDP weakness.
Despite the lowered EPS expectation, Goldman sees an attractive risk-reward in DSBG, given its potential upside is in line with the sector average.
Goldman said SME and unsecured PL credit risk is the greatest at DSBG. Meanwhile, it sees tight HKD liquidity and related funding risk for smaller banks like DBSG.
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