CMB International Raises GAC GROUP (02238) Target Price to HK$4.3, Maintains "Buy" Rating
Stock News
Sep 02
CMB International released a research report stating that despite GAC GROUP (02238) posting a loss of RMB 1.3 billion in the second quarter, which fell short of the firm's expectations, they believe the market will not focus heavily on the company's profit and loss performance this year. The brokerage expects that new models launched through GAC's partnership with Huawei next year could be more competitive and serve as a positive catalyst for the company.
The firm also noted that GAC's joint ventures and associated companies have significant potential for employee cost reduction. CMB International maintains its "Buy" rating on GAC GROUP's H-shares and has raised the H-share target price from HK$3.6 to HK$4.3.
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