Citigroup initiates coverage of Dongfeng Motor at "buy"
By Chris Oliver
HONG KONG (MarketWatch) -- Citigroup has recommended investors buy shares of Hong Kong-listed Dongfeng Motor (HK:489), noting the firm, which has stakes in three Chinese automobile joint ventures, has demonstrated an ability to grow its passenger vehicle business faster than the general industry since listing.
In the report dated Monday, the broker noted Dongfeng should benefit from a broad line up of cars and trucks and a deep reservoir of new vehicle models.
"Dongfeng is our preferred large-cap exposure to China's car market among Hong Kong-listed China auto stocks," wrote Citi analysts headed by Gerwin Ho.
Citi has set a price target of HK$4.20 a share, about 27% above Dongfeng's Friday close of HK$3.31