Morgan Stanley: Maintains "underweight" rating for SJM HOLDINGS (00880) and slightly lowers target price to 2.4 Hong Kong dollars.

Morgan Stanley released a research report stating that considering SJM HOLDINGS (00880) fourth quarter performance last year, EBITDA forecasts for this year and next year have been lowered by 7% and 6% respectively, to 4.1 billion Hong Kong dollars and 4.6 billion Hong Kong dollars, representing a year-on-year increase of 9% and 11% respectively. Due to operating leverage, the bank has also lowered net profit forecasts for this year and next year by 14.6% and 13%. The bank expects the company's earnings per share for 2025 to 2027 to be 0.12 Hong Kong dollars, 0.18 Hong Kong dollars, and 0.26 Hong Kong dollars respectively. The target price has been slightly reduced from 2.45 Hong Kong dollars to 2.4 Hong Kong dollars, with a rating of "sell".