[ET Net News Agency, 11 February 2021] Morgan Stanley lifted its target price for China
Mengniu Dairy (02319) to HK$56 from HK$50 and maintained its "overweight" rating.
The research house said management recently cited rational spending in 2020-2021 given
raw milk price pressure. Morgan thus lowered its opex estimates for 2020-2022. As a
result, its earnings estimates for 2020-2022 were raised by 1-2%.
It said the target price hike factored in (1) 1-2% higher earnings for 2020-2022, and
(2) 10% higher earnings growth in outer years as Mengniu explores new channels and new
products which could help support long-term growth. (KL)