Morgan Stanley: Expects CICC (03908) stock price to rise in the next 30 days with a target price of 28.9 Hong Kong dollars.
The bank expects that this merger will bring significant synergies, including strengthening the capital base, expanding the customer base, relatively rapid integration process, and limited dilutive impact on the H-share shareholders of the company.
Morgan Stanley released a research report stating that it is expected that the stock price of CICC (03908) will rise in the next 30 days, with a probability of about 70% to 80%, based on the announced stock swap and merger with Dongxing and Cinda. The firm has set a target price of HK$28.9 for CICC, with a rating of "hold".
The report indicates that CICC has announced the details of the stock swap merger, with the implied 2025 third quarter P/B ratios of 1.8x for CICC's A shares, 1.8x for Dongxing (including a 26% premium), and 3.1x for Cinda. The firm expects this merger to yield significant synergies, including strengthening of capital base, expansion of client base, relatively rapid integration process, and limited dilution impact on CICC shareholders.
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