China Resources(Holdings)Co.,Ltd.

B of AML Upgrades CHINARES CEMENT to Buy with Target Lifted to $6

Time:2017-09-20Source:AAStocks Financial News

Bank of America Merrill Lynch, in its report, said according to its analysis about Guangdong-Hong Kong-Macao Bay Area, the area will contribute an additional 6.6% CAGR in cement demand in 2018-20, thus pushing demand to 7-8% in Guangdong and Guangxi. This can offset the 4-5% supply growth from 4Q17 to 2018. CHINARES CEMENT business exposure in these two provinces, so should benefit the most in the implementation of Bay Area plan.
The broker raised the company's 2017-19 EPS forecast by 13%-18%, upgraded from Neutral to Buy with target price lifted from $5 to $6, equivalent to 9x 2018 P/E (estimate).

(AAStocks Financial News) 2017/09/20