[ET Net News Agency, 6 August 2020] Goldman Sachs cut its target price for AIA Group
(01299) to HK$83 from HK$86 and maintained its "buy" rating.
AIA is scheduled to report 1H results on 20 August. The research house believes
investors should also expect a decline in the margin in the near term, as Goldman believes
AIA will need to stabilize agent income to avoid high agent turnover.
Meanwhile, Goldman updated its estimates to reflect year-to-date sales and equity
market/bond yield movements and lowered its FY2020-22 net profit forecasts by 3-9%.
Goldman would focus on the new CEO's comments around capital/dividends, and additional
initiatives to support and enhance its agency channel to prepare for any growth recovery
in 2H 2020/FY2021. (KL)