Morgan Stanley: Raises target price of COSCO Shipping Holdings (01919) to 9.6 Hong Kong dollars, maintains "underweight" rating.

Morgan Stanley released a research report stating that the target price of COSCO Shipping Holdings (01919) was raised by 13%, from HK$8.5 to HK$9.6. They maintained a "underweight" rating, mainly considering the expected oversupply in the next 12-24 months. However, if the spot market performs strongly in the next 1-2 months due to the surge in American restocking demand, Morgan Stanley believes there is short-term upside risk. Morgan Stanley raised the earnings per share forecast for 2025 and 2026 by 13% and 12% respectively, to reflect changes in assumptions on freight and fuel prices. They introduced an earnings forecast of RMB 0.9 per share for 2027. The changes in forecasts reflect the upside risk in the spot market caused by the mismatch in supply and demand following the easing of tensions in the US-China trade relations.