What a wrong call. MTR was trading close to $26..
DJ MARKET TALK: MS Lifts MTRC Target To HK$20; Keeps Underweight
1009 [Dow Jones] STOCK CALL: Morgan Stanley lifts MTRC (0066.HK) target to HK$20.00 from HK$15.30, based on 1%/21% higher EPS forecast for FY09/10 driven by " constructive view of the Hong Kong residential market and higher ASP assumptions."
Still, says current valuation of 23X FY10 P/E, 1.3X P/B close to peak multiples; keeps Underweight call. Adds, 12% of broker's estimated NAV attributable to earnings generated after 2011, thinks market assigning significant NAV to future property, rail projects and assigning zero risk, which not prudent.
Notes stock has underperformed developer peers since March; warns, "we expect this to continue." MTRC +0.8% at HK$24.25.
Source; Dow Jones Newswire