[ET Net News Agency, 16 January 2020] Goldman Sachs raised its target price for China
Overseas Grand Oceans Group (COGO)(00081) to HK$7.4 from HK$4.5 and upgraded its rating to
"buy" from "neutral".
The research house said COGO is now Goldman's top pick among small-cap developers as it
sees more promising scale growth potential for this small but COLI (00688) owned name,
which should drive substantial market cap expansion on the right execution.
When the growth headroom for top developers becomes increasingly limited, Goldma expects
this quality SOE engine begins to shine as a potential consolidator in tier-3 cities. It
expects COGO to deliver outpaced presales growth in the coming two years, potential
earnings beat and sustainably higher earnings growth towards 2022. (KL)