S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - JPMorgan has upgraded Hong Kong Exchanges (HK:388) (OTC:HKXCY) from Neutral to Overweight while raising its price target to HK$500.00 from HK$400.00.
The upgrade comes as trading volumes at Hong Kong Exchanges have sustained at all-time-high levels, according to JPMorgan. These elevated volumes stem from significant flows in the Hong Kong financial system, including Hong Kong dollar strength and Hong Kong Monetary Authority intervention year-to-date.
Other contributing factors include reduced A/H premium in H-shares, strong Southbound flows representing 28% of Hong Kong trading volumes in the third quarter to date, a firm IPO pipeline, improvement in China A-shares, and a weaker U.S. dollar.
JPMorgan has increased its FY25-27 earnings per share estimates by 5-16% based on higher projected trading volumes of HK$235/250/252 billion for Hong Kong and Southbound flows, compared to HK$243 billion year-to-date. These forecasts now exceed consensus estimates.
The new price target of HK$500 is based on a 39.5x FY26 estimated price-to-earnings ratio, which represents 1.5 standard deviations above the mean, reflecting JPMorgan’s expectation of continued re-rating during a period of positive earnings revisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.