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UBS downgraded Qingdao Port International (6198:HK) stock rating from buy to neutral on Monday, while slightly lowering its price target to HK$7.40 from HK$7.50.
The downgrade follows a significant 24% rebound in Qingdao Port’s share price since late April, which UBS attributes to resilient port volume and temporary easing of trade tensions between China and the United States.
The investment bank noted that the strong port volume was partly explained by front-loading of shipments in anticipation of potential China-US trade disruptions.
UBS stated that despite both the US and China significantly lowering reciprocal tariff rates and agreeing to continue negotiations, there has been "no change in fundamentals" for the company since UBS’s last earnings revisions.
The firm concluded that Qingdao Port International’s valuation "no longer attractive post the share price rally," prompting the downgrade despite the maintained underlying business outlook.
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