A GOOD BUYING OPPORTUNITY FOR ICBC CHINA'S BIGGEST BANK BY MARKET CAP BY MORGAN STANLEY REPORTSource : Infocast
Research Reports MS raises ICBC (01398) target by 2.7% to $7.5
(Infocast News) Morgan Stanley maintains its "Overweight" rating for ICBC
(01398) and raises its price target for the stock by 2.7% to $7.5, as it has a
bullish stance on ICBC's net interest margin for RMB assets and ICBC has a
conservative provisioning and has announced a capital raising, the brokerage
says.
Morgan Stanley also fine-tuned its earnings estimates for ICBC for 2010 and 2011
on back of 2009 results.
Morgan Stanley considers improving loan pricing on tighter credit supply
relative to demand and more favorable deposit mix shift as the two key drivers
for net interest margin. A normalizing of liquidity helps market rates,
benefiting ICBC's liquid balance sheet, the brokerage says. It also believes
that ICBC's fund raising will be less dilutive than peers, as ICBC is unlikely
to issue the full 20% of H shares, in addition to its convertible bond offer
ICBC IS CURRENTLY TRADING AT 5.4 HNK$
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