Bank of America Securities: Raises target price of CMSC (06099) to HKD 16.6, with a rating upgrade to "buy"

Bank of America Securities released a research report stating that they have upgraded their rating on CMSC (06099) from "underperform" to "buy" to reflect the profit potential brought about by the increase in A-share trading and potential investment returns related to IPOs in the second to fourth quarters. The target price for CMSC's H shares has been raised from 15.3 Hong Kong dollars to 16.6 Hong Kong dollars to reflect a 16% increase in earnings per share forecast for 2026 to 1.68 RMB, as well as an increase in the expected mid-term return on equity from 8% to 8.8%. The bank also believes that recent changes in management and the news of a potential IPO from ChangXin Storage will serve as short-term catalysts, and the slowing outflow of funds from the "national team" since the end of the first quarter should also help push the stock price higher.