UBS has issued a research report, maintaining a "Neutral" investment rating for CLP HOLDINGS (00002) while raising its price target. The target, based on a discounted cash flow (DCF) valuation, has been increased by 14% from HK$70 to HK$80.

However, the firm has concurrently reduced its net profit forecasts for CLP for the 2026, 2027, and 2028 fiscal years by 5% each. This downward revision reflects the company's actual performance in the 2025 fiscal year and ongoing weakness in its overseas market operations.

UBS provided two key reasons for upholding the Neutral rating. Firstly, the bank does not anticipate a significant recovery in the company's overseas business segment during the 2026-2027 fiscal years. Secondly, it views the stock's dividend yield as relatively unattractive, noting that its premium over the U.S. 10-year Treasury yield has turned negative.

The report suggests that CLP's recent strong performance is primarily attributable to shifting market expectations regarding U.S. interest rate hikes, which has prompted a rotation of funds into more defensive stocks.