Bank of America Securities Raises Target Price for CMSC (06099) to HK$16.6, Upgrades Rating to "Buy"

Stock News
05/21

Bank of America Securities issued a research report upgrading its rating for CMSC (06099) by two notches from "Underperform" to "Buy." The upgrade reflects the potential for increased profitability due to rising A-share trading activity and potential investment gains related to IPOs in the second through fourth quarters. The firm raised its H-share target price for CMSC from HK$15.3 to HK$16.6, based on a 16% increase in the 2026 earnings per share forecast to RMB 1.68 and an expected improvement in the medium-term return on equity from 8% to 8.8%. The report also noted that recent management changes and news regarding the ChangXin Memory Technologies IPO could serve as short-term catalysts, while a slowdown in capital outflows from "national team" investors since the end of the first quarter is also expected to support share price appreciation.

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