Citi: Lowers target price for Hong Kong Exchanges and Clearing (00388.HK) to HKD 495, maintains "Buy" rating.

According to the Zhichun Finance APP, Citigroup has released a research report maintaining a "Buy" rating for the Hong Kong Stock Exchange (00388.HK) and has adjusted the target price from HKD 530 to HKD 495, corresponding to a forecasted price-to-earnings ratio of 31 times for 2027. Citigroup expects the Hong Kong Stock Exchange to announce its second-quarter results on August 19, predicting a shareholder profit of HKD 5 billion for the period, representing a quarter-on-quarter decrease of 3% but a year-on-year increase of 13%, which is 7% higher than market consensus; total revenue is expected to be HKD 8.1 billion, indicating a quarter-on-quarter decrease of 1% and a year-on-year increase of 13%, benefiting from robust trading in Hong Kong stocks and northbound transactions; investment income is expected to decline by 23% quarter-on-quarter and 36% year-on-year to HKD 1 billion, mainly due to the high base effect.