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<Research Report>M Stanley Believes WH GROUP (00288.HK) Share Price to Rise in 60 Days; Target at $9
Morgan Stanley, in its tactical idea report, believed that it is 70-80% likely to see the share price of WH GROUP (00288.HK) to rise in absolute terms over the next 60 days.
The broker rated Overweight with target price of $9.
Morgan Stanley said the share price of WH Group fell 8% in the past two days (while HSI stayed flat), reflecting market worries over downside risk to 2017 earnings with declining operating profit in the US business in 2H17.
Morgan Stanley said the worries are overdone, as the decline of US operations in 2H17 is cyclical against last year's high base.
The recovery of the group's China business in 2H17 can also offset the negative impact of the US business, thus kept the group's 2017/18 recurrent earnings growth of 4%/14% respectively.
Source: AAStocks Financial News