[ET Net News Agency, 16 October 2019] Goldman Sachs lowered its target price for BOCHK
(02388) to HK$35.1 from HK$35.9 but upgraded its rating to "buy" from "neutral".
The research house said BOCHK is the bank that could grow loans faster than the system.
It has more exposure to the faster-growing ASEAN region but a lower SME exposure, thereby
positioning it better than HK Bank peers in this slower macro growth environment.
In addition, relative to closest peer HSB (00011), BOCHK trades at a very wide discount
on valuations. Goldman expects this discount to narrow as BOCHK starts to show resilient
earnings delivery (30 October is the next event when the bank reports 3Q performance).
(KL)