HSBC Global Research raised its target price for HKEX (00388) to HK$285 from HK$230 and upgraded its rating to "buy" from "hold".
The research house thinks an important strategic reason HKEX wanted to achieve with the proposed bid for LSEG would have been to increase non-turnover driven revenue. A higher non-turnover driven revenue exposure would have helped reduce HKEX's earnings volatility and would have translated into a lower beta and a higher valuation.
HSBC raised its 2019-21 profit estimates by 4-13%. Its new target price implies a 35x 2020 PE (modestly below the five-year average: 37x) and 2020 ADT of HK$105bn (+10%) without factoring in any potential reforms and market initiatives.
etnet榮獲HKEX Awards 2023 「最佳表現證券數據供應商」大獎► 了解詳情
