JPMorgan has issued a research report, increasing its price target for China International Capital Corporation Ltd (HKG: 3908) by 16.3% to HK$28.5 from HK$24.5, while maintaining its "Overweight" rating.

The bank forecasts a return on equity (ROE) of 11.3% for CICC in 2027, which is notably higher than the consensus estimate of 10.2% among institutions. JPMorgan anticipates that an upward revision of this market consensus will drive a re-rating of CICC's valuation.

The report states that the ongoing consolidation at CICC is expected to enhance its ROE, with the recovery pace likely to be faster than currently anticipated by investors.

JPMorgan projects that CICC's ROE will rise from 9.4% in 2025 to 11.3% in 2027, driven by a robust market environment and balance sheet leverage following the consolidation.

The bank also views CICC as a unique beneficiary within China's technology growth cycle and expects it to outperform its peers in capitalizing on favorable regulatory developments.