Morgan Stanley: ICBC (01398) Expected to Experience Absolute Price Increase in Next 60 Days, Target Price HKD 7.60

Stock News
Oct 22

According to recent reports, Morgan Stanley has expressed confidence that the stock price of ICBC (01398) will show an absolute increase in the next 60 days. The firm estimates the probability of this scenario occurring to be approximately 70% to 80% (indicating a "high likelihood"). The rating is set at "Overweight," with a target price of HKD 7.60. Morgan Stanley anticipates that the stock prices of banks will be supported by seasonal fund inflows, leading to greater upward potential before the end of this year. The firm believes that moderate yet stable credit demand should stabilize financial asset yields and the bank's net interest margin, thus supporting revenue and profit growth in the coming quarters. It expects ICBC to achieve another quarter of positive earnings growth in the third quarter of this year, with a 6.1% dividend yield providing an attractive return opportunity.

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