by winston » Wed May 27, 2015 2:15 pm
<Research Report>M Stanley Raises TPs for Chinese Insurers
Morgan Stanley said in a report that Chinese insurance stocks recently saw a rapid growth, implying fundamental recovery and strong A-share performance.
The industry will welcome a range of growth opportunities from demographic trends, ongoing market liberalization, and policy support. The broker maintained an attractive view on insurance insurers.
In addition, Morgan Stanley noted that AIA (01299.HK) successfully transferred its multiple from 1x EV to 15 VNB over the past four years.
The broker's latest order of preferences were shown as follows:
1. PING AN (02318.HK),
2. CPIC (02601.HK),
3. CHINA LIFE (02628.HK),
4. PICC GROUP (01339.HK),
5. PICC P&C (02328.HK),
6. CHINA TAIPING (00966.HK), and
7. NCI (01336.HK).
PING AN-H, CPIC-H and CHINA LIFE-H were recommended Overweight, with target prices lifted to $141, $49, and $41 from $95, $47, and $35 respectively.
Meanwhile, PICC GROUP-H was upgraded to Equalweight from Underweight, with a target price of $5.3 (up from $3.4).
CHINA TAIPING-H was also upgraded to Equalweight from Underweight and its target price was raised from $16 to $28.
Source: AAStocks Financial News
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