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Investing.com - JPMorgan has upgraded Hang Lung Properties (HK:0101) stock rating from Neutral to Overweight while raising its price target to HK$10.00 from HK$7.50.
The upgrade comes as the property developer shows signs of stabilization in Mainland China tenant sales, with year-over-year decline narrowing from -7% in the first quarter of 2025 to -1% in the second quarter.
According to JPMorgan, Hang Lung management noted this improvement has continued into July, maintaining a "cautiously optimistic" outlook for the second half of 2025 with expectations of flattish or mildly positive growth.
The firm believes sales stabilization would be sufficient to trigger a rerating of the stock, which has underperformed its peers with a 51% decline since its peak, compared to a 7% average decline among Hong Kong property peers.
JPMorgan highlighted that Hang Lung’s 6.5% dividend yield remains among the most attractive in its peer group, with management guiding for flat full-year dividend per share and no plans to issue convertible bonds.
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